Are the following statements true or false ? Give reasons. Market pric – InterviewSolution

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1.	Are the following statements true or false ? Give reasons. Market price is always more than factor cost.
Answer» Correct Answer - False. Market price can be less than factor cost if net indirect taxes (NIT) are negative . Market price can also be equal to factor cost if NIT is zero. False. Market price can be less than factor cost if net indirect taxes (NIT) are negative . Market price can also be equal to factor cost if NIT is zero.

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