Final answer:
The difference between the sale price and the cost of intermediate goods is the added value, which covers production costs and desired profit, contributing to the firm's supply curve.
Step-by-step explanation:
The difference between the price the firm sells a good for and the price the firm paid other firms for intermediate goods is known as the added value. The difference between the sale price and the cost of intermediate goods is the added value, which covers production costs and desired profit, contributing to the firm's supply curve. This added value is the firm's markup, which includes the cost of production at the margin - such as the cost of ingredients and overheads like rent and workers' wages - and the firm's desired profit. The firm determines this price based on its cost structure and the profit margin it hopes to achieve, which is reflected in one point on the firm's supply curve.