The value added on an item produced means:
A) a firm's profits on the item sold.
B) the value of the labor inputs in the production of an item.
C) the value of a firm's output less the value of its costs.
D) the value of a firm's output less the value of the intermediate goods that the firm purchases.

Question

Quizplus · Accepted Answer

Value added refers to the difference between a firm's output and the cost of intermediate goods purchased, representing the additional value created by the firm.

The Value Added on an Item Produced Means