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Value Added Is Defined as

Question 48

Multiple Choice

Value added is defined as


A) the value of productivity gains that arise when a firm increases its capital-labor ratio.
B) the difference between the value of all resources used to produce a product and the final selling price of that product.
C) the amount by which the value of a firm's output exceeds the value of the goods and services the firm purchases from other firms.
D) the cost savings that a firm enjoys when it reduces the cost of its resources by employing a more efficient production method.

Correct Answer:

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