Value Added Is Defined As

question 84

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 total cost of production of a product and the total revenues earned from the sale of the product.
• C) the amount by which the value of a firm's final output exceeds the total value of the intermediate goods and services used to produce the good.
• D) the cost savings that a firm enjoys when it reduces the cost of its resources by employing a more efficient production method.

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Definitions:

Rational Beings

Refers to entities that possess the capacity for logical analysis and decision-making based on reasoning.

Humanists

Individuals who emphasize the value and agency of human beings, individually and collectively, and often reject religious beliefs.

Individual Uniqueness

The distinct characteristics and qualities that make each person different from others.

Potential for Growth

The inherent capacity or ability of an individual or organism to develop and mature beyond its current state.