Sir said in the explanation video that Factor Cost includes Subsidies and excludes taxes. Can someone please clarify?
I thought Factor Cost is simply what you pay for the 'factors of production' and has nothing to do with taxes/subsidies. Production taxes and Production subsidies are included only at the Basic Price level, right? Then when the good reached the market- product taxes and subsidies are applied on top of the Basic Price.
Did I get it all wrong lol