Question

Firm a sold to firm b good of rupees 80 crore ;to firm c rupees 50 crore ;to household rupees 30 crore and good of value rupees 10 crore remains unsold

Answer 1

Firm A

Sale to firm B = 80 crore

Sale to firm C = 50 crore

Sale to household = 30 crore

Stock = 10 crore

Firm B

Sale to firm C = 70 crore

Sale to firm D = 40 crore

Export = 30 crore

Government = 5 crore

Computation:

1. Value of output by Firm B = 70 crore + 40 crore + 30 crore + 5 crore

Value of output by Firm B = 145 crore

2. Value added by Firm B = 145 crore - Purchase from A

Value added by Firm B = 145 crore - 80 crore

Value added by Firm B = 65 crore