Economists define a business's "value added" as
A) the amount the firm pays for goods and services less the revenue from the sale of goods and services.
B) the revenue from the sale of goods and services less the amount the firm pays for goods and services.
C) the total value of the goods and services created by the firm.
D) the value that consumers place on the goods and services created by the firm.

Question

Quizplus · Accepted Answer

Value added is calculated as the revenue from the sale of goods and services minus the cost of goods and services purchased from other firms.

Economists Define a Business's "Value Added" as