Explanation:

Let's explain the sequence and the options:

- (C) Estimation of value of output produced by each firm in all sectors of the economy during the year.

- This is the first step, where you measure the total value of output.

- (A) Estimate Gross Domestic Product at market price.

- After adding the value added at each stage, you get GDP at market prices.

- (B) Calculate Net Domestic Product at factor cost.

- You subtract depreciation (to get ‘Net’) and adjust for indirect taxes/subsidies (to get ‘Factor Cost’) from GDP.

- (D) Calculate Net National Product at factor cost.

- Finally, add net factor income from abroad to move from “Domestic” to “National.”

Now, let’s check the options:

- Option 1: (C), (A), (B), (D)

- This lists the steps in the correct logical order.

- Option 2: (A), (B), (C), (D)

- This starts with GDP before you've calculated output, which is illogical.

- Option 3: (B), (C), (D), (A)

- This mixes up the sequence badly.

- Option 4: (D), (A), (C), (B)

- Again, illogical sequence.

Correct option:

- Option 1 is correct!