Factor cost
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Factor cost has the following uses in economics:
- Factor cost or national income by type of income is a measure of national income or output based on the cost of factors of production, instead of market prices.[1] This allows the effect of any subsidy or indirect tax to be removed from the final measure.
- Factor cost can also refer to the unit cost of a particular factor of production (input in the production process), such as the wage rate or the rental rate of capital.
[edit] References
- ^ Bannock, Graham, ed. (1998) [1972] (in English). Dictionary of Economics. New York: John Wiley and Sons. ISBN 0-471-29599-X.
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