It is true of the demand side of the market for input pricing that
A)the same marginal productivity principle serves as the foundation for the demand schedule for each type of input.
B)the demand schedule for one input cannot be determined independently of demand schedules for other inputs.
C)the demand curve is the complete MRP curve.
D)any inward shift in demand for a commodity will result in outward shifts in the demand curves for the inputs used to produce the commodity.

Question

Quizplus · Accepted Answer

The same marginal productivity principle serves as the foundation for the demand schedule for each type of input. Each input is demanded based on its contribution to the production process, and the demand schedule is determined by the marginal productivity of that input. While the demand for one input may be affected by the demand for other inputs, the demand schedule for each input can be determined independently. The demand curve only represents a portion of the MRP curve, and an inward shift in demand for a commodity may or may not result in outward shifts in the demand curves for the inputs used to produce the commodity depending on the substitutability of the inputs.

It Is True of the Demand Side of the Market