If factor cost is ₹3,500 crore and net indirect taxes are ₹450 crore what will be market price?
Answer and explanation
Correct answer: ₹3,950 crore
The relationship between the two valuations is Market Price = Factor Cost + Net Indirect Taxes. Substituting the given values gives ₹3,500 crore + ₹450 crore = ₹3,950 crore. Hence, option C is correct. ₹3,050 crore would result from subtracting the tax, while ₹3,500 crore ignores the tax and ₹4,400 crore adds the figures incorrectly.
Frequently asked questions
What is the correct answer to this question?
₹3,950 crore
Why is this the correct answer?
The relationship between the two valuations is Market Price = Factor Cost + Net Indirect Taxes. Substituting the given values gives ₹3,500 crore + ₹450 crore = ₹3,950 crore. Hence, option C is correct. ₹3,050 crore would result from subtracting the tax, while ₹3,500 crore ignores the tax and ₹4,400 crore adds the figures incorrectly.
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.
Student feedback
Was this question useful?
👍 0 Helpful 👎 0 Not helpful
Yes 0% No 0%
0 responsesStudent Reviews
No published reviews yet.
