The value added by a firm is defined as:

A) the sum of all income earned by the workers in the firm.
B) the firm's actual investment minus planned investment.
C) the value of the product manufactured by the firm plus the transaction costs incurred by the firm.
D) the value of the firm's product minus the cost of materials it bought from other firms.
E) the increase in the value of the firm's stock or bond.

Value Added

Describes the additional worth created at each stage of production or distribution, calculated as the difference between the cost of inputs and the price of outputs.

Transaction Costs

Expenses incurred during the process of buying or selling goods or services, not including the price of the products themselves.

Product Manufactured

Goods that have been created through a process of transformation from raw materials to finished items.