Value added is defined as
a. the value of productivity gains that arise when a firm increases its capital-labor ratio.
b. the difference between the value of all resources used to produce a product and the final selling price of that product.
c. the amount by which the value of a firm's output exceeds the value of the goods and services the firm purchases from other firms.
d. the cost savings that a firm enjoys when it reduces the cost of its resources by employing a more efficient production method.