→ Per Unit (Marginal) Costs
→ Time Horizon
→ How much it demands from its input markets
→ Agricultural Goods (I) vs Factory Goods (E)
→ Scope (Geographic Scope) of the market
→ Spare production capacity
→ Ease of factor substitutability/factor mobility
→ Stocks of finished products and components
increases
No change in Demand curve.
Quantity Demanded increases (extension/ movement along Demand Curve)
The cost to a business of producing one more unit of production
The demand that an individual will have for goods and services at any given price.
Shift right
Goods which are in fixed supply
i.e. you cannot increase supply
e.g. Picasso paintings, concert seats, pumpkins (in the short term)
As we consume more of a product, the utility we get from consuming the next product deceases.
