ECONOMICS

Detailed explanation-1: -Value-added is the difference between the price of a product or service and the cost of producing it. The price is determined by what customers are willing to pay based on their perceived value.

Detailed explanation-2: -Market value added (MVA) is the amount of wealth that a company is able to create for its stakeholders since its foundation. In simple terms, it’s the difference between the current market value of the company’s stock and the initial capital that was invested in the company by both bondholders and stockholders.

Detailed explanation-3: -Explanation: Market value added represents the difference between the market value of equity and the book value of equity while economic value added is the net operating profit after taxes adjusted for the cost of capital. Economic value added is also called residual income. Hence the statement is false.