Question

The theory of supply is the theory of how much output firms choose to produce. The principal assumption of the supply theory is that the producer will maintain the level of output at which he maximizes his profit. Profit can be defined in terms of revenue and costs. Revenue is what the firm earns by selling goods or services in a given period such as a year. Costs are the expenses which are necessary for producing and selling goods or services during the period. Profit is the revenue from selling the output minus the costs of inputs used. Costs should include opportunity costs of all resources used in production. Opportunity cost of a commodity is the amount an input can obtain in its best alternative use (best use elsewhere). In particular, costs include the owner's time and effort in running a business. Costs also include the opportunity cost of the financial capital used in the firm. Aiming to get higher profits, firms obtain each output level as cheaply as possible. Firms choose the optimal output level to receive the highest profits. This decision can be described in terms of marginal cost and marginal revenue. Marginal cost is the increase in total cost when one additional unit of output is produced. Marginal revenue is the corresponding change in total revenue from selling one more unit of output. As the individual firm has to be a price-taker1, each firm's marginal revenue is the prevailing market price. Profits are the highest at the output level at which marginal cost is equal to marginal revenue, that is, to the market price of the output. If profits are negative at this output level, the firm should close down. An increase in marginal cost reduces output. A rise in marginal revenue increases output. The optimal quantity also depends on the output prices as well as on the input costs. Of course, the optimal supply quantity is affected by such noneconomic factors as technology, environment, etc2. Making economic forecasts, it is necessary to know the effect of a price change on the whole output rather than the supply of individual firms. Market supply is defined in terms of the alternative quantities of a commodity all firms in a particular market offer as price varies and as all other factors are assumed constant.

Answer 1

Ответ:

Теория предложения - это теория того, сколько продукции фирмы предпочитают производить. Основное допущение теории предложения состоит в том, что производитель будет поддерживать тот уровень выпуска продукции, при котором он максимизирует свою прибыль.

Прибыль можно определить в терминах выручки и затрат. Выручка-это то, что фирма зарабатывает, продавая товары или услуги в течение определенного периода, например года. Затраты - это затраты, необходимые для производства и реализации товаров или услуг в течение рассматриваемого периода. Прибыль - это выручка от продажи продукции за вычетом затрат на используемые ресурсы.

Затраты должны включать в себя альтернативные издержки всех ресурсов, используемых в производстве. Альтернативная стоимость товара - это сумма, которую входной сигнал может получить в своем лучшем альтернативном использовании (лучшее использование в другом месте). В частности, затраты включают в себя время и усилия владельца при ведении бизнеса. Затраты также включают в себя альтернативную стоимость финансового капитала, используемого в фирме.

Стремясь получить более высокую прибыль, фирмы получают каждый уровень выпуска продукции как можно дешевле. Фирмы выби…

Объяснение:

Answer 2

The theory of supply analyzes how firms determine the quantity of output they choose to produce. According to this theory, the primary assumption is that producers aim to maximize their profits by maintaining an optimal level of output. Profit is typically defined as the revenue generated from selling goods or services minus the costs incurred in production. Costs include various expenses required for producing and selling goods or services, including the opportunity cost of resources used.

Opportunity cost refers to the value of the best alternative use of a resource. For example, if a resource can be used for a more profitable purpose elsewhere, its opportunity cost would be the potential benefit it could provide in that alternative use. Costs also include the owner's time and effort in managing the business, as well as the opportunity cost of the financial capital invested in the firm. To maximize profits, firms strive to obtain each output level at the lowest possible cost.

The decision-making process of choosing the optimal output level can be described in terms of marginal cost and marginal revenue. Marginal cost represents the increase in total cost when one additional unit of output is produced, while marginal revenue is the change in total revenue resulting from selling one more unit of output. In competitive markets where firms are price-takers, meaning they have no influence over market prices, each firm's marginal revenue is equal to the prevailing market price. Profits are maximized when the marginal cost equals the marginal revenue (market price).

If the calculated profits are negative at this output level, it would be advisable for the firm to cease operations or consider alternative strategies. An increase in marginal cost leads to a reduction in output, while a rise in marginal revenue results in an increase in output. The optimal quantity of output also depends on output prices and input costs. Additionally, non-economic factors such as technology and environmental considerations can influence the optimal supply quantity.

When making economic forecasts, it is important to understand the impact of price changes on the overall output of a market rather than focusing solely on individual firm supply. Market supply is determined by considering the various quantities of a commodity offered by all firms in a particular market as prices vary, assuming all other factors remain constant.