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Sales by Firm A are Rs. 80 crores and sa...

Sales by Firm A are Rs. 80 crores and sales by firm B are Rs. 300 crores. Value added by B and C are equal. Value of output of C and D are Rs. 280 crores each. Value added by D is Rs. 120 crores and `GDP_(MP)` is Rs. 520 crores. Assuming A's value of inputs are zero, calculate: (i) Value added by firm B and firm C, (ii) Value of Inputs of firm B, (iii) Value of Inputs of firm C.

Text Solution

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The correct Answer is:
(i) Value added by firm B = Value added by firm C= Rs. 160 crores; (ii) Value of Inputs of firm B= Rs. 140 crores; (iii) Value of Inputs of firm C= Rs. 120 crores
Given: Value added by firm B= Value added by firm C
Let the value added by firm B=x
It means: Value added by firm B = Value added by firm C=x
Value of Inputs of firm D
= Value of output - Value Added =280-120=160
Value of inputs of firm B and firm C are taken C are taken as `VI_(B) " and " VI_(C )` respectively

Value added by firm A =80
Value added by firm B =x
Value added by firm C =x
Value added by firm D =120
`GDP_(MP)" "=520`
It means:
`80+x+x+120=520`
2x=520-200 or x=Rs. 160 crores
Value of Inputs of firm B
= Value of output - Value Added = 300-160= Rs. 140 crores
Value of Inputs of firm C
= Value of output - Value Added = 280-160= Rs. 120 crores
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