A(n) ________ Arises from a Past Decision and Cannot Be

question 167

Short Answer

A(n) ________ arises from a past decision and cannot be avoided or changed; it is irrelevant to future decisions.

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Definitions:

Factor Market

A marketplace for the services of a factor of production, such as labor, capital, or land, where these are bought and sold.

Marginal Productivity

Refers to the increase in output that arises from an additional unit of input, assuming all other factors of production remain constant.

Marginal Productivity Theory

An economic theory suggesting that payment to factors of production equates to their marginal contribution to the output.

Value Added

The increase in the value of a product or service as a result of a particular process, typically measured as the difference between the cost of inputs and the price it's sold for.