Because the Supply of a Fixed Factor Is Vertical

question 121

Multiple Choice

Because the supply of a fixed factor is vertical,

• A)the owners of the factor will accept all prices above zero.
• B)only the supply of the factor matters for setting price
• C)only the demand for the factor matters in setting the price.
• D)the price will be set where the quantity supplied of the factor equals the quantity demanded.

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Definitions:

Noncash Assets

Assets owned by a business or individual that are not in the form of cash or cash equivalents, such as buildings, machinery, or intellectual property.

Net Income and Losses

The total amount of money a company has earned (net income) or lost (net losses) during a specific period.

Liquidation

The process of ending a business and distributing its assets to claimants, typically occurring when a company becomes insolvent.

Investment

Investment refers to the allocation of resources, such as time, money, or effort, in something with the expectation of generating income or profit.