Supply Analysis and Supply Function
Supply of a good or service refers to the quantities that the seller (s) is willing to and able to offer for sale at various prices within a given time period, other factors held constant. The foregoing discussion on production and cost analysis and the objectives of the firm (chapter 2) have thrown light on the determinants of supply. The amount of a good supplied depends on a number of factors that can be stated in terms of a supply function as follows.
Sx = f (Px, Py, C, T, O, F, W, N)
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