Question
Output and Supply

Answer

OutputSupply
1. Output refers to the total quantity of a commodity that a producer produces with the help of factors of production using a particular technology during a given period of time.(a) Supply refers to the quantity of a commodity which producers are willing to offer for sale at a given price during a given period of time.
2. Output is a function of input. So, O = f (Inputs)(b) Supply is a function of stock. So, S =f (Stock)
3. Output depends upon the level of investment, technique of production, cost of production, availability of factors and natural resources, etc.(c) Supply depends on the stock and price.
4. Output forms the basis of stock.(d) Stock forms the basis of supply.

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