Factor cost includes the payments made to the _____ which does not include Tax.

Factors of Production

The correct answer is Option (1) → Factors of Production

Factor cost includes only the payment to factors of production, it does not include any tax.

Factors of Production: These are the resources used to produce goods and services, including land, labor, capital, and entrepreneurship. Factor cost refers to the payments made to these factors for their contribution to the production process.