Other factors affecting supply

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  • Created by: Jade
  • Created on: 21-11-12 16:09
Explain how a rise in oil prices affects a firm?
Leads to a rise in the cost of fuel - this affects the distribution costs of all businesses.
1 of 12
In some types of activity, labour costs are a high proportion of total costs (particularly in the service sector) Labour costs - an increase in labour costs has to be passed on to the consumers in the form of ______ prices.
Higher
2 of 12
Labour in plentiful supply will usually not increase in price to the same extent as labour which is?
Specialist and in short supply
3 of 12
Technological change has a bearing on the costs of production. Give an example.
All answers
4 of 12
Some industries are more competitive than others. E.g. in the case of ____________, very minor increases in costs can have a big impact on supply.
Grocery retailing
5 of 12
In other markets, where there is a _____ brand or ______ producers - any cost increases can usually be passed on to consumers, with very little or no effect on profits.
Strong, a few
6 of 12
Any increase in _____ will have to be passed on to the consumer through ________ prices.
VAT, increased prices
7 of 12
UK business frequently complain about _____ and the impact of _____ on their costs.
Compliance, bureaucracy
8 of 12
What type of regulation leads to higher production costs, compared to the costs in countries that have less demanding standards.
Health and Safety
9 of 12
In a few instances, the government is prepared to give an _____ ______ to firms. This is in the form of a payment to reduce costs, and hence prices to consumers.
Annual subsidy
10 of 12
A fall in raw material costs, an improvement in labour efficiency, a reduction in the rate of indirect tax, a positive technological change all led to?
Increase in supply
11 of 12
An increase in cost of raw materials, an increase in labour costs, an increase in indirect tax, a failed technological advance all led to?
Decrease in supply
12 of 12

Other cards in this set

Card 2

Front

In some types of activity, labour costs are a high proportion of total costs (particularly in the service sector) Labour costs - an increase in labour costs has to be passed on to the consumers in the form of ______ prices.

Back

Higher

Card 3

Front

Labour in plentiful supply will usually not increase in price to the same extent as labour which is?

Back

Preview of the front of card 3

Card 4

Front

Technological change has a bearing on the costs of production. Give an example.

Back

Preview of the front of card 4

Card 5

Front

Some industries are more competitive than others. E.g. in the case of ____________, very minor increases in costs can have a big impact on supply.

Back

Preview of the front of card 5
View more cards

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