Question

    Minimum Support Price (MSP) is fixed on the basis of

    A Average cost of production Correct Answer Incorrect Answer
    B Equal to average cost Correct Answer Incorrect Answer
    C Marginal cost of production Correct Answer Incorrect Answer
    D Total cost of production Correct Answer Incorrect Answer

    Solution

    The MSP is fixed by the government based on several factors, primarily the total cost of production, to ensure farmers receive a minimum profit margin for their crops and to safeguard their interests.

    Practice Next