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

₹ 140 Cr

The correct answer is option B: ₹ 140 Cr

Output (Sales + Change in Stock) for each firm:

• Firm A: Output = Sales + Change in Stock = 50 Cr + 20 Cr = 70 Cr
• Firm B: Output = Sales + Change in Stock = 200 Cr - 30 Cr = 170 Cr

Value added = Output- Intermediate Consumption

Value added by Firm A =70-0=70 Cr

Value added by Firm B =170-100=70 Cr

GDP at MP= Value added by Firm A + Value added by Firm B 

               = 70+170

               =Rs 140 Cr