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If the factor cost of a product is Rs 500, indirect tax on it is Rs 50 and subsidy given by the government is Rs 15, than what is the market cost of that product?
  • a)
    Rs 565
  • b)
    Rs 550
  • c)
    Rs 435
  • d)
    Rs 535 
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
If the factor cost of a product is Rs 500, indirect tax on it is Rs 50...
Market cost = factor cost + indirect taxes - subsides. Therefore, 500 + 50 – 15 = 535. 
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Most Upvoted Answer
If the factor cost of a product is Rs 500, indirect tax on it is Rs 50...
Given:
Factor cost of the product = Rs 500
Indirect tax on the product = Rs 50
Subsidy given by the government = Rs 15

To Find:
Market cost of the product

Solution:
The market cost of a product is calculated by adding the indirect tax and subsidy to the factor cost.

Step 1: Calculate the total indirect tax and subsidy.
Total indirect tax = Rs 50
Total subsidy = Rs 15

Step 2: Deduct the subsidy from the indirect tax.
Net indirect tax = Total indirect tax - Total subsidy = Rs 50 - Rs 15 = Rs 35

Step 3: Add the net indirect tax to the factor cost to get the market cost.
Market cost = Factor cost + Net indirect tax = Rs 500 + Rs 35 = Rs 535

Therefore, the market cost of the product is Rs 535.
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If the factor cost of a product is Rs 500, indirect tax on it is Rs 50 and subsidy given by the government is Rs 15, than what is the market cost of that product?a)Rs 565b)Rs 550c)Rs 435d)Rs 535Correct answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about If the factor cost of a product is Rs 500, indirect tax on it is Rs 50 and subsidy given by the government is Rs 15, than what is the market cost of that product?a)Rs 565b)Rs 550c)Rs 435d)Rs 535Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the factor cost of a product is Rs 500, indirect tax on it is Rs 50 and subsidy given by the government is Rs 15, than what is the market cost of that product?a)Rs 565b)Rs 550c)Rs 435d)Rs 535Correct answer is option 'D'. Can you explain this answer?.
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