Market price is ₹4,480 crore and it is 112 percent of factor cost. What is factor cost?
Answer and explanation
Correct answer: ₹4,000 crore
The statement means market price = 112% of factor cost, or 4,480 = 1.12 × factor cost. Hence factor cost = 4,480 ÷ 1.12 = ₹4,000 crore, equivalently 4,480 × 100/112. Option D incorrectly multiplies by 1.12 instead of reversing the percentage. Options A and C do not satisfy the stated 112% relationship, because 112% of either amount is not ₹4,480 crore.
Frequently asked questions
What is the correct answer to this question?
₹4,000 crore
Why is this the correct answer?
The statement means market price = 112% of factor cost, or 4,480 = 1.12 × factor cost. Hence factor cost = 4,480 ÷ 1.12 = ₹4,000 crore, equivalently 4,480 × 100/112. Option D incorrectly multiplies by 1.12 instead of reversing the percentage. Options A and C do not satisfy the stated 112% relationship, because 112% of either amount is not ₹4,480 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.
