Demand for Inputs

Demand for Inputs - There is a large variety of raw...

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Demand for Inputs: Firms produce output and bring it to the market. The whole activity is carried out with the intention of earning profits. In order to achieve this, firms have to maximize their returns or revenue and minimize their cost of production. Their ability to control cost of production will depend upon supply and demand conditions in the input market.
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Unformatted text preview: There is a large variety of raw materials, land, capital, equipment, and labor services employed by the firm. Though demand for such inputs is important in theory, there is a special significance concerning the demand for labor. This is because labor is a human factor of production. Labor is not only a means but also an end of all economic activities....
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