A change in the supply of one factor of production
A)will not change either the marginal productivities or the prices of other factors.
B)will not change the prices of other factors, but it may change their marginal productivities.
C)will not change the marginal productivities of other factors, but it may change their prices.
D)changes the marginal productivities and the prices of other factors.

Question

Quizplus · Accepted Answer

A change in the supply of one factor of production can affect the marginal productivity of other factors due to changes in the input mix, and it can also affect their prices due to changes in supply and demand dynamics in the factor markets.

A Change in the Supply of One Factor of Production