Value Added
The market value of a good or service less the value of the resources used to produce it.
The value added can be positive or negative, i.e. the producer could be destroying value. For example, during the transition from communism many government-owned Russian firms produced goods that sold in the marketplace for less than the value of the resources needed to produce them. That loss was covered with subsidies from the government.
The value added can be positive or negative, i.e. the producer could be destroying value. For example, during the transition from communism many government-owned Russian firms produced goods that sold in the marketplace for less than the value of the resources needed to produce them. That loss was covered with subsidies from the government.