Case study: An economy has only two firms A and B.
Items (in lacs)
1. Exports by firm A 20
2. Imports by firm A 50
3. Sales to households by firm A 90
4. Sales to firm B by firm A 40
5. Sales to firm A by firm B 30
6. Sales to households by firm B 60
Answer the question on basis of above information.

Gross Domestic Product at market price will be:

120 lac

GDP at market Price -Value added by firm A + value added by firm B
Value added by Firm A= Total Sales - total Purchases=(Exports+ sales to Households +sales to firm B-Imports-Purchase from Firm B) =(20+90+40-50-30)=70 Lakhs
Value Added by Firm B= (sale to households+ sale to A-Purchase from A)= (30+60-40)=50 Lakhs

GDP at market Price = 70+50=120 Lakhs