APFIVE Derived Demand for Capital
If there is a decline in the overall demand for a firm’s product, what is the expected impact on the firm’s demand for capital?
A
There will be no change because the demand for capital is independent of product demand.
B
The derived demand for capital will increase as the firm substitutes labor with technology.
C
The derived demand for capital will decrease because lower product demand reduces the need for capital in production.
D
The firm will maintain its capital usage to build long-term capacity, regardless of the current product demand level.
Question Leaderboard
| Rank | |||||
|---|---|---|---|---|---|
| #1 | m.a.abduahatova | 2 | 2 | 0m 00s | 200 |
| #2 | hxuna0217 | 2 | 2 | 0m 00s | 200 |
| #3 | tianyu.zeng.biec | 1 | 1 | 0m 00s | 100 |
| #4 | prishaprishaprisha | 1 | 1 | 0m 58s | 42 |
| #5 | shloktanna2010 | 1 | 3 | 1m 07s | 13 |
| #6 | jasmineleung1007 | 1 | 1 | 10m 40s | -540 |
Items per page:
10
1 – 6 of 6