Practice question · Numerical answer
A workshop buys raw steel for 3,000€, other materials for 1,200€, and sells its finished gates for 9,500€. Compute its value added in euros.
Hints
- Subtract everything bought from other firms from the sales figure.
- Both purchases count, not only the raw material.
Show the answer
5300 (answers within ±0.5 count)
Why
Value added €, the pool from which wages, rent, interest, and profit are all paid.
Practise Concept of the Firm
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