The Demands for Labor and Other Input Factors Are Called

question 92

Multiple Choice

The demands for labor and other input factors are called

• A) derived demands, because the demand for these inputs depends on the demand for goods and services they are employed to produce.
• B) developed demands, because the demand for these inputs is developed from an analysis of the costs of advertising products.
• C) indirect demands, because the demand for these inputs is indirectly related to the costs of advertising products.
• D) reverse demands, because the demand for these inputs varies inversely with the demand for goods and services they are employed to produce.

---

Definitions:

Transfer Pricing Formula

A set of methods or calculations used to determine the price for goods and services transacted between controlled or related legal entities within an enterprise.

Durian Juice Concentrate

A thick liquid made by removing most of the water from durian fruit juice, used as a base in food products and beverages.

Variable Production Cost

Costs that vary in direct proportion to changes in levels of production, such as materials and labor directly involved in manufacturing.

External Suppliers

Companies or individuals outside a company that provide goods or services to the company.