Costs of production
What Costs of production means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Costs of production
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Reference: Pearson Edexcel
Changes in these, such as wages, raw material prices or business taxes, cause shifts in short-run aggregate supply.
Expenses such as cheap land and utilities that firms seek to keep low when selecting a production site.
Topics that use Costs of production
- Assessing the potential of different economies (Pearson Edexcel A-Level)
- The AD/AS model (Pearson Edexcel A-Level)
Related terms
- Aggregate Demand (AD)
- Consumer demand
- Cost-push inflation
- Demand-pull inflation
- Factors of production
- Full capacity output
- Macroeconomic equilibrium
- Movement along the AD curve
Using Costs of production in the exam
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