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Non-Competitive Markets

Question
CBSEENEC12012604

From the following information about firm x, calculate NVA at FC.

(र in lakhs)

(i)

Purchase of raw material

500

(ii)

Gross capital formation

200

(iii)

Subsidies

60

(iv)

Opening stock

50

(v)

Sales

800

(vi)

Net capital formation

180

(vii)

Closing stock

40

Solution

NVA at FC = 800 + (40 -50) - 500 - dep. (200 - 180) + 60
= र 330 lakhs.