The demand for capital by a firm is based on the demand for the product that the capital produces. This relationship is referred to as
A. cost minimization.
B. resource utilization.
C. derived demand.
D. product demand.
Answer: C
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The production function for a good is a downward-sloping linear curve
a. True b. False Indicate whether the statement is true or false
If the price elasticity of supply is elastic, which of the following could be a possible value of the elasticity?
A. 3 B. 1 C. 0.3 D. 0
What does the “cyclically adjusted budget” measure and of what significance is this concept?
What will be an ideal response?
In the graph, the difference between points d and e indicates that at $50M of R&D spending, the
A. marginal cost is greater than the marginal benefit. Thus, R&D spending should be reduced. B. marginal cost is less than the marginal benefit. Thus, R&D spending should be increased. C. marginal cost is greater than the marginal benefit. Thus, R&D spending should be increased.