It Is True of the Demand Side of the Market

question 107

Multiple Choice

It is true of the demand side of the market for input pricing that

• A)the same marginal productivity principle serves as the foundation for the demand schedule for each type of input.
• B)the demand schedule for one input cannot be determined independently of demand schedules for other inputs.
• C)the demand curve is the complete MRP curve.
• D)any inward shift in demand for a commodity will result in outward shifts in the demand curves for the inputs used to produce the commodity.

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the overall financial gain of a business.

Own Capital

Refers to the funds or resources that a business owner personally invests in their enterprise, as opposed to borrowed capital.

Fixed Factor

An input to the production process that cannot be easily increased or decreased in the short term.

Industry Entry

Refers to the process by which new competitors join an existing market, often affecting competition and market dynamics.