Can market price of a commodity be less than its factor cost? if yes explain that situation

Yes

Explanation:

They are called cash grants given from the government to encourage certain commodities or to sell good for prices lower than the market prices. Thus the market price of a commodity is less than its factor cost.

for many centuries there were important factors which the economies of the muslim empires developed increasingly. they applied economic procedures in production, investment, finance, taxation and property. they used to tax certain goods (for example: harvest), they charged interest on money lent, they signed contracts with merchants; they relied on a common currency, and they used checks as well as promissory notes. with the money collected by means of taxation, the government provided the needy with an income. in addition, trading networks covered huge distances, so far regions started to have contact and exchange goods. this trade network covered areas of asia, africa and europe.