The theory of supply 1.2.4 Flashcards
1
Q
What is the definition of supply
A
The quantity of a good or service that a firm is willing and able to produce at any given price level
2
Q
Something to remember
A
The higher the price, the higher the opportunity cost of them using these F.O.P for some other purpose.
3
Q
what factors shift a supply curve
A
The cost of production
the government
productivity changes
The weather
Joint supply
competitive supply
4
Q
What is a tax
A
A tax is a compulsory levy on an individual or firm by the government. A subsidy is a grant given to an individual or firm by the government.
5
Q
What is productivity
A
Productivity is a measure of the rate of change of output e.g. output per worker or output per hour
