The value of a producer's output minus the value of all intermediate goods used in the production of that output is called the producer's
A) net output.
B) accounting profit.
C) value added.
D) profit margin.
E) costs of production.

Question

Quizplus · Accepted Answer

Value added represents the incremental value created by the producer in the production process. It is the difference between the value of the final product and the cost of all intermediate goods used in its production.

The Value of a Producer's Output Minus the Value of All