The demand for any factor of production in a competitive industry depends on
A) its productivity and upon the value of its output in the marketplace.
B) its productivity and the productivity of all other inputs.
C) the productivity of all the other inputs and how these inputs are valued in the marketplace.
D) the amount of the factor that is used and the amounts of all the other factors that are used.

Question

Quizplus · Accepted Answer

The demand for any factor of production in a competitive industry primarily depends on its productivity and the value of its output in the marketplace. This is because firms are interested in how much output a factor can produce and how valuable that output is when sold.

The Demand for Any Factor of Production in a Competitive