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Distinguish between factor cost and market …

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Distinguish between factor cost and market price

Posted by Suthaarshiny Suthaarshiny 4 years, 6 months ago

CBSE > Class 12 > Economics

1 answers

Amit Chopra 4 years, 6 months ago

Factor cost is the total amount which the manufacturer had to invest in production of a good or commodity. It doesn't include any taxes imposed on the final product. But, the market price is the final cost at which the manufacturer sells the goods to customers. And these are inclusive of all the applicable taxes.

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