The Demand for Any Factor of Production in a Competitive

question 67

Multiple Choice

The demand for any factor of production in a competitive industry depends on

• A) its productivity and upon the value of its output in the marketplace.
• B) its productivity and the productivity of all other inputs.
• C) the productivity of all the other inputs and how these inputs are valued in the marketplace.
• D) the amount of the factor that is used and the amounts of all the other factors that are used.

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Definitions:

Utility Functions

Functions that quantify the satisfaction a consumer derives from consuming quantities of goods and services, used in economic analysis to understand consumer behavior.

Rats

Small to medium-sized rodents known for their sharp teeth and adaptability, often used in scientific research or considered pests.

Utility Function

A mathematical representation that ranks preferences or satisfaction levels of an individual or household for different bundles of goods and services.

Consumption

Domestic consumption of various goods and services.