The Value Added of a Firm Is the Market Value

question 54

Multiple Choice

The value added of a firm is the market value of

• A)a firm's output plus the value of the inputs bought from others.
• B)a firm's output less the value of the inputs bought from others.
• C)the firm's output.
• D)the firm's inputs bought from others.

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Definitions:

Mental Set

A cognitive bias that involves approaching a problem in a particular way, often a way that has been successful in the past.

Means-End Analysis

A problem-solving technique that involves breaking down the problem into smaller problems and achieving goals that direct an individual closer to the ultimate goal.

Noncompensatory Modeling

A decision-making approach where a shortfall in one attribute cannot be offset by a higher value in another attribute.

Artificial Intelligence

The programming of computer systems to simulate human thinking in solving problems and in making judgments and decisions.