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Effectus [21]
2 years ago
13

The cost of making a new skirt is $20. At a price of $15, consumers will demand 600 skirts, and producers will skirts.

History
2 answers:
mixas84 [53]2 years ago
6 0

Producers will not produce any skirts.

In economic theory, the relations of production and consumption are associated with stimuli, tastes and needs.

Every consumer has a reserve price, that is, a maximum limit to which he or she is willing to pay. If the price is above the reserve price, the consumer does not buy. If the price is below, he or she demands.

In the case of the producer, the supply depends on the price at which it is sold and its cost. The cost of producing an additional unit is called the marginal cost. The producer shall have produced if the price is at least equal to the marginal cost.

As the marginal cost of the skirt is $ 20 and the sale price is $ 15, there will be no production because the producer would incur in loss.

insens350 [35]2 years ago
5 0
The producers wll not supply skirts because it costs more to make them then it does to sell them
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