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      Question

      If factor cost is greater than Market price, then it

      means that:
      A Indirect taxes > subsidies Correct Answer Incorrect Answer
      B Indirect taxes = subsidies Correct Answer Incorrect Answer
      C Indirect Taxes < Subsidies Correct Answer Incorrect Answer
      D Indirect taxes = and > subsidies Correct Answer Incorrect Answer

      Solution

      If factor cost is greater than Market price, then it means that Indirect Taxes < Subsidies as market price is the sum of factor cost and net indirect taxes.

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