# An individual firm’s demand for a factor of production ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: An individual firm’s demand for a factor of production ? Correct Answer: B. Slopes downward due to the factor’s diminishing marginal product. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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

Direct Answer & Quick Reference

The correct option is **B. Slopes downward due to the factor’s diminishing marginal product**.

A. 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

B. Slopes downward due to the factor’s diminishing marginal product **(Correct Answer)**

C. slopes upward due to the factor’s increasing marginal product

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

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Verified Key: B. Slopes downward due to the factor’s diminishing marginal product
Solved by 4,941+ students

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