This is an interactive way to express your opinion outside of class for extra credit. You are more than welcome to debate in an apropriate fashion with each other.
Tuesday, October 11, 2011
Supply
How can the determinants of supply affect a business owners profit?
Determinants of supply can affect a business owner's profit. Technology can help lower the cost of production of the business product or service in other words in makes it more efficient therefore saving the business owner more money and making a larger profit. If the business owner sees that its product will sell for more in the future, then the owner will sell the product or service later on to make a bigger profit on the product. However if the price of raw material or the cost to pay for employers increases, than the business will make less profit because it needs to spend more to make its products. In these ways, the determinants of supply can affect a business owner's profit.
Determinants of supply can affect a business owner's profit.
ReplyDeleteTechnology can help lower the cost of production of the business product or service in other words in makes it more efficient therefore saving the business owner more money and making a larger profit.
If the business owner sees that its product will sell for more in the future, then the owner will sell the product or service later on to make a bigger profit on the product.
However if the price of raw material or the cost to pay for employers increases, than the business will make less profit because it needs to spend more to make its products.
In these ways, the determinants of supply can affect a business owner's profit.