The producer 39 s demand for a factor of production is governed by the of the factor ........

Economics- Phase (I & II) Demand and Supply , Market Structures

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The producer's demand for a factor of production is governed by the ____ of the factor.

Price will decrease

Marginal productivity

Availability

Profitability

Utility

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Explanation:

The producer's demand for a factor of production is governed by the marginal productivity of the factor.The term “marginal productivity” refers to the extra output gained by adding one unit of labor; all other inputs are held constant. So, the technology and efficiency of the factory stays the same.