Suppose firm A sold timber produced in its forest to firm B for Rs. 1000 and firewood to consumers for fuel for Rs. 500. Firm B converted logs into slippers and partly sold to furniture making firm C for Rs. 800 and the remaining to private consumers for Rs. 700. Firm C sold furniture worth Rs. 1000 to private consumers and the remaining to a government office for Rs. 500. Calculate : (i) Values added by firm A, firm B and firm C. (ii) Total value of output.
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Value added by firm A= Rs. 1500; Value added by firm B= Rs. 500; Value added by firm C= Rs. 700. (ii) Total value of output = Rs. 4500.
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