Determinants of supply
Technical efficiency: How much does it cost to produce the good or service
Marginal utility: after the first one is produced, how much does the next one cost?
Economic efficiency: what is the mix of inputs to produce the good or service at the least cost?
How much of a good or service is a firm willing to supply at different price levels?
A market operates to find a balance between supply and demand through pricing
Markets operate with greater and lesser degrees of efficiency
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