Firm A spent Rs. 500 crores on non-factor inputs and sold goods worth Rs. 600 crores to firm B and Rs. 300 crores to firm C. Firm B whose value added is Rs. 1000 crores sold half its output to firm C and half to firm D. Value added by firm C is `1//2` of value added of firm D, Firm C and Firm D sold their entire output to households. Value of Output of firm C is equal to firm B's value of output. Calculate value of output of firm D.

Answer

Value of output of firm D= Rs. 1800 crores

Explanation

B's Value of output = Value added + Intermediate consumption = 1000+600=1600
C's Value of output = B's Value of output =1600
C's Value Added `=500=1//2` of value added of D
So,D's Value Added `=500xx2=1000`
D's Value of output = Value added + Intermediate consumption=1000+800=1800