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Non-Competitive Markets

Question
CBSEENEC12012594

From the following data about firm 'A', calculate net value added at market price by it. 

(र in thousands)

(i)

Sales

700

(ii)

Change in stock

40

(iii)

Depreciation

80

(iv)

Net indirect taxes

100

(v)

Purchase of machinery

250

(vi)

Purchase of intermediate products

400

Solution

NVA at MP = (700 + 40) - 400 - 80 = 260 thousands.
Note : Purchase of machinery is not included as it is a durable asset to be used in future production.