The Demand for Factor Inputs

question 7

Multiple Choice

The demand for factor inputs:

• A)depends upon the markets for the goods that the inputs are used to produce.
• B)is referred to as imputed demand.
• C)is independent of how much the inputs contribute to the value of the end product.
• D)is generally constant across most factor markets.

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Definitions:

Selling

The process of persuading someone to buy a product or service.

Administrative Expense

Costs related to the general operation of a company that are not directly tied to a specific business activity, such as salaries of executive personnel, office supplies, and utilities.

Direct Materials

Raw materials that are directly incorporated into a finished product and can be directly attributed to the product manufacturing process.

Factory Building

A type of commercial real estate designed for manufacturing processes, assembly, and storing materials and goods used and produced by industrial and manufacturing operations.