An industrial economist is evaluating the supply and demand conditions for two different factors of production. Factor 1: The demand curve is derived from the resource’s marginal revenue product in the current period. Factor 2: The supply curve is perfectly inelastic and the price is determined by demand. Which of the following choices most likely identifies these two factors of productionFactor 1 Factor 2 ()①A. LaborNon-renewable resource ②B. Machinery Renewable resource ③C. Labor Renewable resource
A. ①
B. ②
C. ③