Question

any producer wants to earn maximum profit and minimize cost of production .Explain the concept of cost,revenue and profit for the producer
?
​

Answer 1

Answer:

Explanation:

it is a simple logic that any producer wants to earn maximum profit at minimum cost of production.

there are a lot of factors affecting supply of commodities in the market

for example:

if the government gives subsidies to the firms,then the firms will be willing to produce their goods more,so the supply of commodities in the market increases.

then if a news is spread that the price of a commondity rises in the near future,then the producers of those commodities will hold on their stocks and do not sell at the present prices as they know that the price will increase in future.

then there,other example such as in a monopoly,that particular firm controls the market as his goods has got no perfect substitutes to compete.

Hope this helps

thanks