Which of the Following Is Not True of Derived Demand

question 166

Multiple Choice

Which of the following is not true of derived demand?

• A)It derives from the price of output goods.
• B)It is a function of marginal physical productivity.
• C)It is the marginal revenue product curve.
• D)It is not affected by prices of the input factors.

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Definitions:

Income Statement

An income statement is a financial document that shows a company’s revenues, expenses, and profits over a specific period, illustrating the profitability of the business.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position, including assets, liabilities, and equity, at a specific point in time.

Rent Payable

A liability account that records the amount of rent owed but not yet paid to the landlord.

Prepaid Rents

Payments made in advance for rent, which are recorded as an asset and then expensed over the period the payment covers.