Economy, asked by anilkumarbagli1187, 8 months ago

Firm A sells to firm B for ₹50 crores and for ₹70 crores to private consumption. Firm B sells for ₹80 crores to firm C. Firm C sells for ₹100 crores to private consumption.Calculate value added by firm A B and C .

Answers

Answered by madeducators11
0

Value added : Firm A= Rs. 120 crores, Firm B= Rs. 30 crores Firm C= Rs. 20 crores

Explanation:

Pls refer to the pic below

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Answered by sanjeevk28012
0

value added by firm A B and C .

Given

Sales, private consumption of firm A, B,C

To Find

Value added by firm A B C

Solution

Value of output of firm A = Sales to B + Sales to private consumption

Value of output of firm A = 50 + 70

Value of output of firm A = 120

Intermediate consumption of A = Value of output of A

There is no value of output of firm A

So, Intermediate consumption of firm A is 0

Value added by firm A = Value of output of firm A - Intermediate consumption of A

Value added by firm A = 120 - 0

Value added by firm A = 120

Value of output of firm B = Sales to C

Value of output of firm B = 80

Intermediate Consumption of B  =  Purchase from B

Intermediate consumption of B = 50

Value added by firm B= Value of output of firm B - Intermediate consumption of B

Value added by firm B = 80 - 50

Value added by firm B= 30

Value of output of C=  Sales to  private consumption

Value of output of C= 100

Intermediate consumption= Purchase from firm B

Intermediate consumption=  80

Value added by firm C = Value of output of C - Intermediate consumption

Value added by firm C = 100 - 80

Value added by firm C = 20

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