A Change in the Quantity Demanded of a Given Factor

question 11

Multiple Choice

A change in the quantity demanded of a given factor of production will occur if:

• A) the productivity of that factor decreases.
• B) the productivity of that factor increases.
• C) the price of that factor rises.
• D) there is a decrease in the price of a substitute factor.

Compare the pricing and output decisions of monopolistic and competitive firms under identical cost conditions.

Analyze the concept of price discrimination, including its conditions and outcomes.

Recognize the economic implications of monopoly on long-run profit potential and market entry barriers.

Identify and understand different sources and consequences of natural monopoly.

---

Definitions:

Market Loyalty

Market loyalty refers to the preference and consistent choice of customers for a specific brand, product, or service over competitors, often influenced by satisfaction, quality, and emotional connection.

Global Scale

Refers to the scope or extent of activities, operations, or phenomena that span across multiple countries and cultures, impacting or involving the global population.

Target Markets

Specific groups of potential customers that a business aims to reach with its products, services, and marketing efforts.

Marketing Actions

Initiatives or strategies implemented by a company to promote its products or services, aiming to achieve specific marketing objectives and enhance market presence.