Advertisements
Advertisements
Question
Which formula defines Market Prices?
Options
\(\text{Market Prices} = \text{Basic Prices} - \text{Net Product Taxes}\)
\(\text{Market Prices} = \text{Factor Cost} + \text{Net Production Taxes}\)
\(\text{Market Prices} = \text{Total Output} - \text{Intermediate Consumption}\)
\(\text{Market Prices} = \text{Basic Prices} + \text{Net Product Taxes}\)
MCQ
Advertisements
Solution
Market Prices are obtained by adding Net Product Taxes to Basic Prices. Market Prices therefore include product taxes minus subsidies.
shaalaa.com
Is there an error in this question or solution?
