Factor markets for baked goods are influenced by the

Question

Quizplus · Accepted Answer

The demand for baked goods directly affects the demand for factors of production (such as labor and capital) in the baking industry. The marginal productivities of labor and capital also play a role in determining the prices of factors of production in the baking industry. Additionally, the prices of final goods and services (such as cakes and pastries) influence the prices that bakeries can charge for their products, which in turn affects their demand for factors of production. Therefore, all of the factors listed in choices A, B, and C can influence factor markets for baked goods.

Factor Markets for Baked Goods Are Influenced by the