What is the difference between market …
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Sia ? 4 years, 5 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. Further, the final Price is decided by also keeping the subsidies offered by the government into account.
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