8. Calculate the added value for each of the following firms.
Microsoft:
Value of output $2,750
Wages and salaries 400
Cost of capital 40
Cost of materials 1,650
Barclays Bank:
Value of output $5,730
Wages and salaries 3,953
Cost of capital 916
Cost of material 556
General Motors:
Value of output $50,091
Wages and salaries 29,052
Cost of capital 15,528
Cost of materials 7,507
9. In measuring economic profit:
a. How do you deal with a one-time event?
b. How do you deal with money provided by relatives to get the business started?
c. How do you handle off-balance-sheet expenses-that is, expenses that are incurred by the firm but are not measured as part of the firm's balance sheet?