Final answer:
The factor payment standard determines the amount that should be paid for an input. It is used to calculate the cost of production for a given quantity of output.
Step-by-step explanation:
The amount that should be paid for an input is specified by a standard called the factor payment standard. This standard determines the amount of money that should be paid for each input associated with the production process.
For example, if the input is labor, the factor payment standard will specify the wages and salaries that should be paid to the workers. The cost of production for a given quantity of output is then calculated by multiplying the amount of each input required to produce that quantity of output by the associated factor payment.