economies of scale :)
If a product increases in poularity, and decreases its production cost, I would expect that the company selling this product is going to enjoy increased profits.
The market value of a firm's equity increases, the cost of capital decreases.
As the cost of credit increases, the quantity demand decreases. in contrast, if the cost of borrowing drops, the quantity of credit demand rises.
when number of activity or units decreases
Marginal cost of production
cartel
It decreases cost of production and increases supply.
Unit cost decreases
If a product increases in poularity, and decreases its production cost, I would expect that the company selling this product is going to enjoy increased profits.
A positive 3
The market value of a firm's equity increases, the cost of capital decreases.
As the cost of credit increases, the quantity demand decreases. in contrast, if the cost of borrowing drops, the quantity of credit demand rises.
When supply decreases but demand does not, cost increases. That would probably be most noticeable in the new home construction industry, the largest consumer of lumber.
when number of activity or units decreases
Marginal cost of production
it increases the cost of goods sold and it decreases the gross profit.
It lowers cost and increases supply.