Explanation:

- Market Price reflects the price at which goods and services are actually sold in the market. It includes taxes and excludes subsidies.

- Factor Cost represents the cost of factors of production only, without accounting for taxes and subsidies.

- Direct Taxes: These are taxes directly paid by individuals or organizations to the government. They don't form part of the difference between market price and factor cost.

- Indirect Taxes: These are taxes on goods and services, like sales tax, which affect the market price.

- Subsidies: These are financial support from the government, reducing the market price of goods and services.

- Net Indirect Taxes: This is the total of indirect taxes minus subsidies, making it the basis of the difference between market price and factor cost.

- Correct Answer: Net Indirect Taxes

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