Costs of production
What Costs of production means in Economics GCSE, as defined for AQA.
Definitions of Costs of production
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Reference: AQA
These include wages, raw materials and energy, and a rise in them reduces the supply of a good or service at any given price.
If costs such as wages or raw materials rise, supplying the product becomes less profitable, reducing supply.
Topics that use Costs of production
- Supply for goods and services (AQA GCSE)
Related terms
- Change in supply
- External shocks
- Goods and services
- Government intervention
- Indirect taxes
- Law of supply
- Market forces
- Movement along the curve
Using Costs of production in the exam
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