alleryStart learning →A commodity sells for Rs 100 in its principal market. Transport costs Rs 2 and transaction costs Rs 3. Fair value?
ARs 95
BRs 100
CRs 98
DRs 97
Answer & Solution
Correct answer: C. Rs 98
Location is a characteristic of a commodity, so transport cost is deducted (100 - 2 = 98) while transaction costs are ignored.
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