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Demand in Factor Markets Differs from Demand in Product Markets

Question 1

Multiple Choice

Demand in factor markets differs from demand in product markets in that


A) the demand for a factor of production is difficult to determine.
B) the demand for a factor of production is influenced by workers' productivity and by the producers' expected sales revenues, not by tastes and preferences of consumers.
C) demand for a factor of production is based on the tastes and preferences of firms.
D) demand for a factor of production is based on the tastes and preferences of resource owners.

Correct Answer:

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