Market price and Factor cost will be equal when there is:
Market price and Factor cost will be equal when there is:
(a) No direct tax
(b) No indirect tax
(c) No subsidy
(d) No indirect tax and no subsidy
Anurag Pathak Changed status to publish December 5, 2023
Ans – (d)
Market Price = Factor Cost + Indirect Tax – Subsidy
when Indirect tax and subsidy both are zero. The market price becomes equal to factor cost.
Anurag Pathak Changed status to publish December 5, 2023
