If factor cost is greater than market price, then it means that ____________________.

Indirect Taxes

>

Subsides

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Indirect Taxes

=

Subsidies

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Indirect Taxes

<

Subsides

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Indirect Taxes

\geq

subsidies

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Solution

The correct option is D Indirect Taxes $<$ Subsides
If factor cost is greater than market price, then it means Indirect taxes < Subsidies. Market price can be less than factor cost when subsidies will be more than the indirect tax.
Formula: Market price - indirect tax + subsidies = Factor cost

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Similar questions

Q. GDP at factor cost is equal to GDP at market price minus indirect taxes plus __________.

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(+) Cost 9
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If factor cost is greater than market price, then it means that ____________________.

The correct option is D Indirect Taxes < SubsidesIf factor cost is greater than market price, then it means Indirect taxes < Subsidies. Market price can be less than factor cost when subsidies will be more than the indirect tax.Formula: Market price - indirect tax + subsidies = Factor cost

The correct option is D Indirect Taxes $<$ Subsides
If factor cost is greater than market price, then it means Indirect taxes < Subsidies. Market price can be less than factor cost when subsidies will be more than the indirect tax.
Formula: Market price - indirect tax + subsidies = Factor cost