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Suppose in an economy there are only two firms A and B. Calculate Gross Domestic Product at Market Price from the given table.

ItemsFirm AFirm B
Sales50 Cr200 Cr
Change in stock+20 Cr-30 Cr
Intermediate Consumption0100 Cr

Solution

Correct Option: 2

Gross Value Added at MP (per firm) = Sales + Change in stock - Intermediate Consumption.

Firm A: 50+200=7050 + 20 - 0 = 70.

Firm B: 200+(30)100=70200 + (-30) - 100 = 70.

GDP at MP =70+70=140= 70 + 70 = 140 crore.

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