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Find net value added at market …

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Find net value added at market price (A) fixed capital good with a life of 5 years=15 (B) raw materials=6 (C) sales =25 (D) net change in stock=(-2) (E) taxes on production=1

    • Posted by Sanket Sur 3 years, 4 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Preeti Dabral 3 years, 4 months ago

     Depreciation on Fixed Capital Good {tex}= \frac { \text { Value of Fixed Capital Good } } { \text { Life Span } } = \frac { 15 } { 5 } = Rs. 3 lakhs{/tex}

    Therefore, Net Value Added at Market Price (NVAMP) = Sales + Net Change in Stock - Raw Materials - Depreciation on Fixed Capital Good

    = 25+ (-2) - 6 - 3 = Rs. 14 lakhs

    1Thank You

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