In an economy, following transactions took place. Calculate Value of Output and Value added by Firm B
In an economy, following transactions took place. Calculate Value of Output and Value added by Firm B.
(i) Firm A sold to firm B goods of ₹ 80 crore; to firm C ₹ 50 crore; to household ₹ 30 crore and goods of value ₹ 10 crore remains unsold.
(ii) Firm B sold to firm C goods of ₹ 70 Crore; to firm D ₹ 40 crore; goods of value ₹ 30 crore were exported and goods of value ₹ 5 crore was sold to government.
Ans: Value of Output of firm B = ₹ 145 crores; Value added by firm B = ₹ 65 crores
Anurag Pathak Changed status to publish December 21, 2023
Solution:-
Calculation of Value of Output by Firm B
Value of Output by Firm B = Goods sold to Firm C + Goods sold to Firm D + Goods exported + Goods sold to government
Value of Output by Firm B = ₹ 70 + ₹ 40 + ₹ 30 + ₹ 5
Value of Output by Firm B = ₹ 145 Crores
Calculation of Value added by Firm B
Value added by Firm B = Value of Output by Firm B – Goods purchased from Firm A
Value added by Firm B = ₹ 145 – ₹ 80
Value added by Firm B = ₹ 65 Crores
Anurag Pathak Changed status to publish November 11, 2023
