high school economics?

Question

  What will happen to the quantity a company supplies if the cost of one or more of the factors of production decreases?

Answer 1

In theory that's the way everyone believes it should work but in reality the company will absolutely implode because the company sucks big balls and isn't providing anything of value to anyone.

Answer 2

It means that the value of marginal productivity is higher than the factor cost per unit. So, the output will increase so that the marginal revenue will be lower and the marginal cost will be higher, and MC=MR again. The thing is that it can happen on the same MC or supply curve.

Answer 3

If there's enough demand for the product and nothing needed to make it (including workers) is in short supply, the company will make more

Answer 4

- it now cost the company less to produce 

- the supply curve of the company shifts to the right.  Thus at any given price point, the company is willing to supply more.

Answer 5

There will be an increase at first, but if demand does not increase, the quantity will drop back to where it was before the production cost decrease.