Two reasons why valuing goods at their market prices is different than valuing them at their factor costs include

Name: Two reasons why valuing goods at their market prices is different than valuing them at their factor costs include
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Question

Quizplus · Accepted Answer

Valuing goods at market prices includes indirect taxes, which increase the price, and subsidies, which decrease the price. Valuing goods at factor costs does not include these additional factors. Therefore, the two methods of valuation can provide different results.

Two Reasons Why Valuing Goods at Their Market Prices Is