For Most Firms in the Economy, the Largest Part of Factor

question 87

Multiple Choice

For most firms in the economy, the largest part of factor costs is the cost of

• A)labor.
• B)capital.
• C)property and machinery.
• D)land and natural resources.

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Definitions:

Total Revenue

The total income generated from the sale of goods or services before any expenses are subtracted.

Demand for Labor

The total amount of labor (number of workers or hours worked) that employers want to hire at various wage rates.

Elastic

Describes a situation in which the demand for a product is sensitive to price changes; a small price change results in a significant change in quantity demanded.

Demand Schedule

A demand schedule is a table that shows the quantity of a good or service that consumers are willing to purchase at various price points.