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:

Savings Account

A deposit account held at a financial institution that provides principal security and a modest interest rate.

Down Payment

An initial upfront portion of the total amount due, typically associated with the purchase of expensive items like cars or real estate.

Present Value Calculation

A financial process that determines the current worth of a future cash flow, stream of cash flows, or an investment, based on a specific discount rate.

Declining-Balance Depreciation

Declining-Balance Depreciation is an accelerated depreciation method that calculates higher depreciation expenses in the earlier years of an asset's life, decreasing over time.