1) Supply law
2) Linear supply function Qs = -c + dp
3) Diminishing marginal productivity- there is a relationship between diminishing marginal productivity and increasing marginal cost. So if increasing production causes increase in cost, price increase to have a balance. Hence if price increases the producers can produce more & can increase supply.
2) Linear supply function Qs = -c + dp
3) Diminishing marginal productivity- there is a relationship between diminishing marginal productivity and increasing marginal cost. So if increasing production causes increase in cost, price increase to have a balance. Hence if price increases the producers can produce more & can increase supply.
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