A Factor Demand Curve Will Shift Because Of

question 24

Multiple Choice

A factor demand curve will shift because of:

• A) the slope of the MP curve.
• B) the elasticity of demand for the final product.
• C) the proportion of the factor's cost relative to total cost.
• D) a change in the price of a complementary factor.

---

Definitions:

Antitrust Laws

Legislation enacted to prevent new monopolies from forming, break up those that already exist, and regulate anti-competitive practices that may harm the market or consumers.

Social Welfare

Programs and policies designed to improve the well-being of individuals and groups in society, often provided by the government.

Marginal-Cost Pricing

A pricing strategy where the price of a good or service is equal to the incremental cost to produce one more unit of a good.

Government Subsidy

A financial contribution provided by the government to support industries or activities beneficial to the public interest, aimed at reducing their costs or encouraging more production and consumption.