MANAGERI
AL
ECONOMICS
UNIT - II
, UNIT - II
Supply: meaning and
determinants - production
decisions - production functions -
Isoquants, Expansion path -
Cobb-Douglas function. Cost
concepts - cost-output
relationship - Economies and
diseconomies of scale – cost
functions.
, Introduction -
Supply
• Supply is the willingness and ability
of producers to make a specific
quantity of output available to
consumers at a particular price over
a given period of time.
• In one sense, supply is the mirror
image of demand.
• For a large number of goods, however,
the supply process is more
complicated than demand.
, DETERMINANTS OF SUPPLY
(LAW OF SUPPLY)
• Supply refers to the various
quantities offered for sale at
various prices.
• According to the Law of Supply,
“more of a good will be supplied
the higher its price, other things
constant or less of a good will be
supplied the lower its price, other
things remaining constant”.
AL
ECONOMICS
UNIT - II
, UNIT - II
Supply: meaning and
determinants - production
decisions - production functions -
Isoquants, Expansion path -
Cobb-Douglas function. Cost
concepts - cost-output
relationship - Economies and
diseconomies of scale – cost
functions.
, Introduction -
Supply
• Supply is the willingness and ability
of producers to make a specific
quantity of output available to
consumers at a particular price over
a given period of time.
• In one sense, supply is the mirror
image of demand.
• For a large number of goods, however,
the supply process is more
complicated than demand.
, DETERMINANTS OF SUPPLY
(LAW OF SUPPLY)
• Supply refers to the various
quantities offered for sale at
various prices.
• According to the Law of Supply,
“more of a good will be supplied
the higher its price, other things
constant or less of a good will be
supplied the lower its price, other
things remaining constant”.
