Suppose firm A sold raw material to firm B for ₹ 1,000 and to firm C for ₹ 600. Firm B sold its product partly to private consumption for ₹ 800 and the reemaining product was exported for ₹ 600
Suppose firm A sold raw material to firm B for ₹ 1,000 and to firm C for ₹ 600. Firm B sold its product partly to private consumption for ₹ 800 and the remaining product was exported for ₹ 600. Firm C part of its product to the government for ₹ 500 for public consumption and the remaining product worth ₹ 500 was unsold stock left with it. (Assume that firm A buys no raw material), (i) Find the value added by firm A, firm B and firm C. (ii) Total Consumption Expenditure.
(i) Value added: Firm A = ₹ 1,600; Firm B = ₹ 400; Firm C = ₹ 400. (ii) Total Consumption Expenditure = ₹ 1,300
Anurag Pathak Changed status to publish December 21, 2023
(i)
Value added by Firm A = Raw material sold to firm B by A + Raw material sold to firm C by A
Value added by Firm A = ₹ 1,000 + ₹ 600
Value added by Firm A = ₹ 1,600
(ii)
Value added by Firm B = Sold to Private Consumers + Export – Purchase from Firm A
Value added by Firm B = ₹ 800 + ₹ 600 – ₹ 1,000
Value added by Firm B = ₹ 400
(iii)
Value added by Firm C = Sold to Goverment for public consumption by C + unsold Stock – Purchase from firm A
Value added by Firm C = ₹ 500 + ₹ 500 – ₹ 600
Value added by Firm C = ₹ 400
(iv)
Total Consumption Expenditure = Sold to Private Consumers by B + Sold to Government for public Consumption by C
Total Consumption Expenditure = ₹ 800 + ₹ 500
Total Consumption Expendituer = ₹ 1,300
Anurag Pathak Changed status to publish November 10, 2023
