The producer will choose that price-output combination which maximizes his profit. In the case of monopoly or imperfect competition, the producer can fix the price. Like an individual consumer, he is a price-taker as an optimistic seller, he believes that he can sell any quantity he is able to produce at the prevailing price. Since in a perfectly competitive market the supply of each seller is only negligible portion of the market supply, he has no control over the price. Hierarchical Supply Chain Planning: Represents an approach and a philosophy towards the organization, planning and scheduling of supply chain activities which facilitates alignment between all short run, medium term and long run activities. The fixed cost in the form of fixed factors i.e., plant, machinery, building, etc. In short period, a distinction is made of two types of costs (i) fixed cost and (ii) variable cost. LO9: Identify and analyze macroeconomic problems using graphi-. There are three major reasons why the short run aggregate supply curve (SRAS) slopes upward. By short run is meant a length of time which is not enough to change the level of fixed inputs or the number of firms in the industry but long enough to change the level of output by changing variable inputs. In a competitive market price is determined by the two forces of demand and supply. Explain how real GDP and the price level are related in the short run.
The concept of supply curve is relevant only under perfect competition. Supply curves are derived from cost curves because supply depends on cost of production. Meaning of Market and Factors Affecting the Size of a Market.How does 'Supply' Differ from 'Stock'? And What are the Factors Determining the Supply of a Commodity?.
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