The Term "Value Added" Refers to the Contribution of Factors

question 34

True/False

The term "value added" refers to the contribution of factors of production to the value of a final product or service.

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing and able to offer for sale at a particular price.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefit to society from the production and consumption of goods or services.

Bottom-up Change

A change strategy where ideas and initiatives originate from lower-level employees and move upward through the organizational hierarchy.

Top-down Change

What occurs when change initiatives come from senior management.