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Non-Competitive Markets

Question
CBSEENEC12012595

Calculate gross value added at FC from the following data : 

(र in lacs)

(i)

Consumption of fixed capital

5

(ii)

Sales

100

(iii)

Subsidies

2

(iv)

Closing stock

10

(v)

Purchase of raw materials

50

(vi)

Opening stock

15

(vii)

Indirect taxes

10

Solution

GVA at MP = 100 + 10 - 15 - 50 = 45 lacs
GVA at FC = 45 + 2 - 10 = 37 lacs.