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Examveda

The producer's demand for a factor of production is governed by the ____ of the factor.

A. Price will decrease

B. Marginal productivity

C. Availability

D. Profitability

Answer: Option B

Solution(By Examveda Team)

The producer's demand for a factor of production is governed by the marginal productivity of the factor.

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Comments ( 1 )

  1. Lakshay Khandelwal
    Lakshay Khandelwal :
    4 years ago

    With given demand curve an increase in supply will result in

Related Questions on Economics

Which among the following statement is INCORRECT?

A. On a linear demand curve, all the five forms of elasticity can be depicted

B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.

C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.

D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.