Value addition can also take place even when the commodity does not go through any transformation.
True or False with Reasons:
Value addition can also take place even when the commodity does not go through any transformation.
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True,
It happens when a commodity is purchased for resale.
For example,
If a mobile shop sells a mobile for ₹ 7,000 after purchasing if for ₹ 6,100, then there is no transformation in mobile, yet value addition is ₹ 900.
Because it provides its productive services in selling the mobile.
It adds to the current flow of goods and services.
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