The Price Received by Each Factor of Production for Its

question 15

Multiple Choice

The price received by each factor of production for its services is determined by:

• A) demand for output and supply of factors.
• B) demand for factors and supply of output.
• C) demand and supply of output.
• D) demand and supply of factors.

---

Definitions:

Consenting Individuals

Persons who have given permission for something, especially in a legal or formal context.

Ideal Conditions

Circumstances or situations that are considered perfect or optimal for a certain process or experiment to occur.

Efficiency

The extent to which a process or intervention produces a desired effect or outcome with a minimum amount of waste, expense, or unnecessary effort.

Beneficial Result

A positive outcome or effect that contributes to the well-being or improvement of a situation or condition.