Factors Affecting Supply
What Factors affect Market Supply?
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What Affects Supply?
Supply is made up of what producers bring into the market for consumers to purchase. As such, numerous factor can affect the supply or amount of production.
The factors of production known to shift the supply curve include:
- Production costs
- Natural conditions for production
- Taxes and Regulations
- Total Utility (Economics)
- Efficiency Principle
- Indifference Curve
- Time Preference Theory of Interest
- Diminishing Marginal Utility
- Sunk Costs
- Production Possibilities Frontier
- Law of Diminishing Returns
- Economic Efficiency
- Efficiency Theory
- Productive Efficiency
- Capacity Utilization Rate
- Pareto Efficient
- Comparative Advantage
- Criticisms of the Economic Approach
- Behavioral Economics
- Normative Economics
- Positive Economics
- Invisible Hand
- Sunk cost