二、供给的影响因素 a The aims of producers For most of the time we shall assume that firms are profit maximization The price of product The higher the price of the good, the more profitable it becomes to produce a Change in technology Technolo gical advances can fundamentally alter the costs of production a Change in input prices Costs of production will rise if wages, raw material price, rents, interest rates or any other input prices rIse a The profitability of goods in joint supply Sometimes when one good is produced another good is also produced expectations of future price changes Government policy Costs will be lowered by government subsidies and raised by various taxes二、供给的影响因素 ▪ The aims of producers For most of the time we shall assume that firms are profit maximization. ▪ The price of product The higher the price of the good, the more profitable it becomes to produce. ▪ Change in technology Technological advances can fundamentally alter the costs of production. ▪ Change in input prices Costs of production will rise if wages, raw material price, rents, interest rates or any other input prices rise. ▪ The profitability of goods in joint supply Sometimes when one good is produced, another good is also produced. ▪ expectations of future price changes ▪ Government policy Costs will be lowered by government subsidies and raised by various taxes