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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.


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

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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