The Demand Curve for a Variable Factor Is Always

question 120

Multiple Choice

The demand curve for a variable factor is always

• A)that factor's marginal cost curve.
• B)that factor's MRP curve.
• C)that factor's MP curve.
• D)steeper than that factor's MRP curve.
• E)flatter than that factor's MRP curve.

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Definitions:

Market Rate

The prevailing interest rate available in the marketplace for similar financial instruments or loans.

Financial Instrument

A contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Maturity Value

The amount that will be payable to the holder of a financial instrument at its maturity date, including principal and interest.

Stated Interest Rate

The nominal or advertised interest rate on a loan or bond, not accounting for compounding or fees.