GradeGen

The difference between a product’s selling price and the cost of bought-in inputs used to provide it.

Added value increases only if the gap between selling price and input costs becomes larger.

Added value is not profit: a business still has other costs to pay, such as wages and rent.

A higher selling price does not necessarily mean more added value if input costs also rise.

The difference between a product’s selling price and the cost of bought-in inputs used to provide it.

Added value increases only if the gap between selling price and input costs becomes larger.

Added value is not profit: a business still has other costs to pay, such as wages and rent.

A higher selling price does not necessarily mean more added value if input costs also rise.

Added value