What do you mean by Net Domestic Product at Factor Cost ?
Net Domestic Product at Factor Cost is the income earned by the factors in the form of wages, profits, rent, interest, etc, it only counts the value of the factors of production used to produce them, excluding indirect taxes and subsidies. Factor costs represent the total payments made to the factors of production—labour, capital and land—for their contribution to the production process. These payments include wages, interest, rent and profits. NDP at FC is calculated by subtracting indirect taxes and adding subsidies from NDP at Market Price (NDP at MP). This adjustment reflects the difference between the prices paid by consumers for goods and services (market prices) and the revenue received by producers from the sale of those goods and services (factor costs).NDP at FC provides a measure of the total income earned by factors of production within the domestic economy, excluding the impact of taxes and subsidies on the final prices of goods and services.
How to Calculate Net Domestic Product at Factor Cost?
Net Domestic Product at Factor Cost calculator uses Net Domestic Product at Factor Cost = Net Domestic Product at Market Price-Net Indirect Taxes to calculate the Net Domestic Product at Factor Cost, Net Domestic Product at Factor Cost is a measure of the total income earned by factors of production within the domestic economy, excluding the impact of taxes and subsidies on the final prices of goods and services excluding taxes. Net Domestic Product at Factor Cost is denoted by NDPfc symbol.
How to calculate Net Domestic Product at Factor Cost using this online calculator? To use this online calculator for Net Domestic Product at Factor Cost, enter Net Domestic Product at Market Price (NDPmp) & Net Indirect Taxes (NIT) and hit the calculate button. Here is how the Net Domestic Product at Factor Cost calculation can be explained with given input values -> 20500 = 23550-3000.