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      Question

      Minimum Support Price (MSP) is fixed on the basis

      of
      A Average cost of production Correct Answer Incorrect Answer
      B Equal to average cost Correct Answer Incorrect Answer
      C Marginal cost of production Correct Answer Incorrect Answer
      D Total cost of production Correct Answer Incorrect Answer

      Solution

      The MSP is fixed by the government based on several factors, primarily the total cost of production, to ensure farmers receive a minimum profit margin for their crops and to safeguard their interests.

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