Question

A firm's value added equals 10) A) its revenue minus its wages. B) its revenue minus all of its costs. C) its revenue minus its wages and profit. D) its revenue minus its cost of intermediate goods. E) none of the above

Answer 1

Answer:

D) its revenue minus its cost of intermediate goods.

Explanation:

The firm value added shows a difference between the revenue and the cost of intermediate goods

In mathematically,

Firm value added = Revenue - cost of intermediate goods

After deducting the cost of intermediate goods from the revenue we can get the firm value added

Hence, the option D is correct as it denotes the firm value added