The producer's demand for a factor of production is governed by the ___ of that factor.
A)Price
B)Marginal Productivity
C)Availability
D)Profitability

Question

Quizplus · Accepted Answer

The producer's demand for a factor of production is primarily governed by its marginal productivity, which refers to the additional output generated by employing one more unit of that factor. Higher marginal productivity makes a factor more desirable to producers.

The Producer's Demand for a Factor of Production Is Governed