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

CA Foundation · Business Economics · MTP · January 2026
The producer's demand for a factor of production is governed by the _________ of that factor.
(A) A. Price
(B) B. Marginal Productivity
(C) C. Availability
(D) D. Profitability

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Marginal Productivity

Topics: Theory of Production and Cost

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