The presence of ________ creates a difference in the value between the market price and the factor cost of a product.

Question

Quizplus · Accepted Answer

The difference in value between the market price and the factor cost of a product is created by the presence of indirect taxes, which increase the market price, and subsidies, which decrease it. Direct taxes and corporate profits do not directly affect this difference.

The Presence of ________ Creates a Difference in the Value