A firm can vary supply of product by controlling

Question

Quizplus · Accepted Answer

The firm can vary the supply of the product by controlling its capacity, which refers to the maximum amount of output that a firm can produce with its existing resources. By increasing or decreasing its capacity, a firm can adjust its level of production and supply to meet changes in demand or market conditions. While revenue and pricing can influence the level of sales, they do not directly control the supply of the product. Demand, on the other hand, is considered an external factor that affects the supply and cannot be controlled by the firm.

A Firm Can Vary Supply of Product by Controlling