A firm can vary supply of product by controlling

Question

Quizplus · Accepted Answer

A firm can control the supply of a product by adjusting its production capacity and inventory levels. By increasing or decreasing the capacity of production, a company can alter the amount of product it can produce in a given time frame. Similarly, by managing inventory levels, a firm can regulate the amount of product it offers in the market. Price promotions may affect demand for the product but do not directly control the supply.

A Firm Can Vary Supply of Product by Controlling