An economy has only two firms A and B. On the basis of following information about these firms, find out:
(a) Value Added by firms A and B, and
(b) Gross Domestic Product at Market Price.
 
  (Rs in lakh)
(i) Exports by firm A 20
(ii) Imports by firm A 50
(iii) Sales to households by firm A 90
(iv) Sales to firm B by firm A 40
(v) Sales to firm A by firm B 30
(vi) Sales to households by firm B 60

Dear student, 


Value added by firm A = Sales to households + Sales to B +Exports - Imports - Sale to A by B
 = 90 + 40 + 20 - 50 - 30= Rs 70 lakhs

Value added by firm B = Sales to households + Sales to A - Sales to B by A
= 60 + 30 - 40 = Rs 50 lakhs

GDP at MP = Value added by A + Value added by B 
= 70 + 50 = Rs 120 lakhs

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