Asked by Stevi Green on Jun 27, 2024
Verified
The demand for inputs is a derived demand because
A) it does not come from competitive markets.
B) it depends on the demand for outputs.
C) it is derived from nature.
D) it is derived from production.
Derived Demand
The demand for resources (inputs) that is dependent on the demand for the outputs those resources can be used to produce.
Inputs Demand
The desire or requirement for factors of production, like labor and capital, that businesses need to produce goods or services.
Demand for Outputs
The quantity of goods and services that consumers and businesses are willing and able to purchase at various prices during a certain period of time.
- Distinguish between different economic terms related to labor demand such as derived demand, marginal product, and MRP.
Verified Answer
MU
muhammed ulutasJun 30, 2024
Final Answer :
B
Explanation :
The demand for inputs (like labor, raw materials, etc.) is considered a derived demand because it directly depends on the demand for the final goods or outputs that these inputs help to produce. If there is high demand for a product, the demand for the inputs needed to make that product also increases, and vice versa.
Learning Objectives
- Distinguish between different economic terms related to labor demand such as derived demand, marginal product, and MRP.