Question : If market price is less then factor cost, it means that:
Option 1: Indirect taxes Subsidies.
Option 2: Indirect taxes = Subsidies.
Option 3: Indirect taxes

Question

Question : If market price is less then factor cost, it means that:

Option 1: Indirect taxes > Subsidies.

Option 2: Indirect taxes = Subsidies.

Option 3: Indirect taxes < Subsidies.

Option 4: None of the above.

Team Careers360 · Accepted Answer

Correct Answer: Indirect taxes < Subsidies.

Solution :

Indirect taxes < Subsidies.

When subsidies are more then indirect taxes, then market price is less then factor cost.

Hence, Option C is correct.

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Question : If market price is less then factor cost, it means that:Option 1: Indirect taxes > Subsidies.Option 2: Indirect taxes = Subsidies.Option 3: Indirect taxes < Subsidies.Option 4: None of the above.

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Question : If market price is less then factor cost, it means that:
Option 1: Indirect taxes > Subsidies.
Option 2: Indirect taxes = Subsidies.
Option 3: Indirect taxes < Subsidies.
Option 4: None of the above.