Value added is equal to the value of a firm's production minus
A) all of its costs of production.
B) labor costs.
C) investment expenditures.
D) intermediate goods used in production.

Question

Quizplus · Accepted Answer

Value added is equal to the value of a firm's production minus the cost of intermediate goods used in production. It is a measure of the value that a firm adds to the economy through its production process. It does not include all costs of production such as labor and investment expenditures.

Value Added Is Equal to the Value of a Firm's