Author Question: Entrepreneurs should always A) be the first mover B) have a brand name C) seek economic profit ... (Read 54 times)

fahad · **on:** Jun 30, 2018

Entrepreneurs should always
A) be the first mover
B) have a brand name
C) seek economic profit
D) seek accounting profit

Question 2

Explain what is meant by derived demand as it relates to factors of production.

jackie · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

C

Answer to Question 2

The demand for a factor of production is derived from the underlying demand for the final good or service, which the factor helps produce. A firm wishes to employ the factor for what the factor will add to the profitability of the firm. Therefore an increase in the price of the final good or service, which increases the profitability of production, will also lead to an increase in demand for factors.