What is a characteristic of the demand for a factor of production

Question

Quizplus · Accepted Answer

The demand for factors of production (such as labor, capital, and land) is a derived demand because it is derived from the demand for the goods and services that these factors help produce. For example, the demand for labor in a car factory is derived from the demand for cars. This is a characteristic of the demand for a factor of production. A) is incorrect because the demand for a factor of production is not based on the supply curve of the product market. C) is incorrect because the demand for a factor of production is not a differentiated demand. D) is incorrect because the demand for a factor of production is generally downward sloping, which is consistent with the law of demand.

What Is a Characteristic of the Demand for a Factor