An individual firm’s demand for a factor of production ?

Question

Xaibi Aslam · Accepted Answer

Slopes downward due to the factor&#8217;s diminishing marginal product

Xaibi Aslam · Answer

Slopes downward because an increase in the production of output reduces the price at which the output can be sold in a competitive market, thereby reducing the value of the marginal producing the value of the marginal product as more of the factor is use

Xaibi Aslam · Answer

slopes upward due to the factor&#8217;s increasing marginal product

Xaibi Aslam · Answer

is perfectly elastic (horizontal) if the factor market is perfectly competitive

Question #48886