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Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
the supply function , depends on [...] as well as [...] . The greater the difference between those two values, the greater is the willingness of producers to supply the good.
Answer
the price at which the good can be sold

the cost of production for an additional unit of the good

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
the supply function , depends on [...] as well as [...] . The greater the difference between those two values, the greater is the willingness of producers to supply the good.
Answer
?

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
the supply function , depends on [...] as well as [...] . The greater the difference between those two values, the greater is the willingness of producers to supply the good.
Answer
the price at which the good can be sold

the cost of production for an additional unit of the good
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the supply function , depends on the price at which the good can be sold as well as the cost of production for an additional unit of the good. The greater the difference between those two values, the greater is the willingness of producers to supply the good

Original toplevel document

3.3. The Supply Function and the Supply Curve
ervice is called supply. In general, producers are willing to sell their product for a price as long as that price is at least as high as the cost to produce an additional unit of the product. It follows that the willingness to supply, called <span>the supply function , depends on the price at which the good can be sold as well as the cost of production for an additional unit of the good. The greater the difference between those two values, the greater is the willingness of producers to supply the good. In another reading, we will explore the cost of production in greater detail. At this point, we need to understand only the basics of cost. At its simplest level, productio

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