market price and factor cost will be equal when there is a) no direct tax b)no indirect tax c)no subsidy d)no indirect tax and no subsidy

Dear student, market price and factor cost are equal when there is no indirect taxes and no subsidy.As we know factor cost =market price - indirect taxes + subsidy.If indirect taxes and subsidy is zero.Then, naturally factor cost becomes equal to market price.Hence, (d) option is correct.Regards

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