Value added is defined as a. the value of productivity gains that arise when a firm increases its capital-labor ratio. b. the difference between the value of all resources used to produce a product and the final selling price of that product. c. the amount by which the value of a firm's output exceeds the value of the goods and services the firm purchases from other firms. d. the cost savings that a firm enjoys when it reduces the cost of its resources by employing a more efficient production method.
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