Factor cost is ₹4,875 crore and it is 125 percent of market price. What is market price?
Answer and explanation
Correct answer: ₹3,900 crore
Here factor cost is 125% of market price. Let market price be x. Then 1.25x = 4,875, so x = 4,875 ÷ 1.25 = 4,875 × 100/125 = ₹3,900 crore. Therefore option B is correct. Option D comes from multiplying by 1.25 rather than finding the original base. Options A and C fail when multiplied by 125%, since they do not produce ₹4,875 crore.
Frequently asked questions
What is the correct answer to this question?
₹3,900 crore
Why is this the correct answer?
Here factor cost is 125% of market price. Let market price be x. Then 1.25x = 4,875, so x = 4,875 ÷ 1.25 = 4,875 × 100/125 = ₹3,900 crore. Therefore option B is correct. Option D comes from multiplying by 1.25 rather than finding the original base. Options A and C fail when multiplied by 125%, since they do not produce ₹4,875 crore.
Which subject and chapter does this question cover?
This is a Class 12 Economics question. Chapter: National Income and Related Aggregates. Topic: Aggregates related to national income - Market price and factor cost.
