The "Value Added" for an Individual Firm Can Be Calculated

question 69

Multiple Choice

The "value added" for an individual firm can be calculated by

• A)subtracting the income that goes to the factors of production used by the firm from the firm's revenue.
• B)adding up the income received by the factors of production used by the firm.
• C)calculating the profit generated by the firm.
• D)adding the cost of the intermediate goods used by the firm.
• E)calculating the revenue generated by the firm.

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Definitions:

Straight-Line Method

A depreciation method that allocates an equal amount of depreciation each year over the useful life of the asset.

Resale Value

The likely selling price of a good or asset if sold at a future date, considering depreciation or appreciation.

Office Furniture

Items designed for use in a work or office setting, including desks, chairs, and file cabinets.

Straight-Line Method

A depreciation method that allocates an equal amount of an asset's cost to each year of its useful life.