Value added by a firm is the market value of the firm's output minus the:

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The value added by a firm is the market value of its output minus the value of inputs bought from other firms. This represents the amount of value that the firm itself contributes to the economy. The total wages paid to employees and profits earned by owners are both components of the firm's output, while the total costs of all inputs used includes the value of inputs bought from other firms.

Value Added by a Firm Is the Market Value of the Firm's