Both neoclassical economics and thorough-going marginalism could be said to explain supply curves in terms of marginal cost; however, there are marked differences in conceptions of that cost.
Marginalists in the tradition of Marshall and neoclassical economists tend to represent the supply curve for any producer as a curve of marginal pecuniary costs objectively determined by physical processes, with an upward slope determined by diminishing returns.
A more thorough-going marginalism represents the supply curve as a complementary demand curve — where the demand is for money and the purchase is made with a good or service. The shape of that curve is then determined by marginal rates of substitution of money for that good or service.
Other articles related to "supply":
... Supply-side economics holds that increased taxation steadily reduces economic trade between economic participants within a nation and that it discourages investment ... Crucial to the operation of supply-side theory is the expansion of free trade and free movement of capital ... Supply-side economists have less to say on the effects of deficits, and sometimes cite Robert Barro’s work that states that rational economic actors will buy bonds ...
... Shortages in supply - very similar to those observed in Argentina after the 2001 price-fixing - are deepening in diesel, LPG, and begin to be apparent in natural gas ... The May–June social unrest affected the supply of hydrocarbons products to the internal market, principally LPG and natural gas to the occidental region ... Although the supply was never curtailed, the social unrest in Bolivia created a strong sensation that security of supply could not be guaranteed ...
... Supply-side economics is a school of macroeconomic thought that argues that economic growth can be most effectively created by lowering barriers for people to produce (supply) goods and ... According to supply-side economics, consumers will then benefit from a greater supply of goods and services at lower prices ... Typical policy recommendations of supply-side economists are lower marginal tax rates and less regulation ...
... The convoy consisted of four medium sized supply vessels and five escort craft ... All four supply vessels and one of the escorting craft were hit with bombs and three of the supply ships were left on fire, the largest having run aground ... into Bodo Harbour, where one large supply ship was hit by bombs and set on fire amidships ...
Famous quotes containing the word supply:
“The supply of words in the world market is plentiful but the demand is falling. Let deeds follow words now.”
—Lech Walesa (b. 1943)
“What would we not give for some great poem to read now, which would be in harmony with the scenery,for if men read aright, methinks they would never read anything but poems. No history nor philosophy can supply their place.”
—Henry David Thoreau (18171862)
“Has Gods supply of tolerable husbands
Fallen, in fact, so low?
Or do I always over-value woman
At the expense of man?
It might be so.”
—Robert Graves (18951985)