Economics for Business: Impact of Inputs, Costs, and Perfect Competition Market on Supply of Goods and Services in UK Industry

Economics for
Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Why inputs and costs impact the supply of goods and services in terms of production
decisions......................................................................................................................................3
Explain the perfect competition market and how it impact the supply of goods and services by
applying in any UK based industry.............................................................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Economics is the branch of studies which helps in decision-making in the presence of the
scarce resources. They are being use to manufacture the goods and services in the large market
for meeting the objective. Supply refers to the amount of goods which is being offered to the
potential consumer. So they need to emphasis on higher level of profits in the market by
updating their product as per the current tends of the company(Chen and et. al., 2019). This
respective report will cover the cost and inputs that are essential for the supply with the effective
consideration of UK economy. Moreover, it will analyse the production decisions on the supply
of the goods by taking the certain economic condition of the UK. It will analyse the supply of the
products and services in the manufacturing sector.
TASK
Why inputs and costs impact the supply of goods and services in terms of production decisions.
Supply: It is the amount of goods that are being offered by the firms to their prospective
customers and this is majorly depends upon the demand of the market in order to produce in the
market an then sold in the competitive market. It is the basic concept of the supply as increase in
the prices of the goods tends to rise the overall supply of the commodities in the large market as
they are offering better products and services to the customers. This shows the positive
relationship in the supply and the price of the given product as the prices increase it will leads to
increase the overall supply of the goods in the large market. The cost of the goods and the prices
of the raw material, labour leads to increase the overall cost production in the large market. It
defines the quantity supplied to by the firms in order to meet the needs and demand of the target
market.
Law of supply: It states that price and the quantity supply is positively related to each
other as there is increasing prices of the goods leads to increase the overall supply of the
commodity in the large market and vice-versa. It is further shown in the graph.

As per the given diagram, it is showing the positive relationship in the prices and the
quantity supplied. As per the above diagram, It can be said the graph is sloping upwards when
the prices of the goods was at p3 and also providing the supply of the product at q3 due to
increase in the supply the given goods in the large market.
Inputs: These respective factors are divided into four categories that includes capital
entrepreneurship labour and land which helps in measuring the the gross domestic product in the
UK economy.
 Land: . It is the the resources that can be found on the earth which is being used for the
crops or the establishment of office interest lecture but when it's come to the economic
level of the nation it becomes wider perspective and also includes the river solar energy e
oil si school which are renewable and nonrenewable sources.
 Labour: It includes the abilities of the employees which is being fully utilised with the
aim of producing product and services. This is basically based on the age of population
and working of an individual which is being measured as per the output given from an
individual in their job role.
 Capital: it is the that amount of resources which is used by the form in order to produce
the goods and services and includes equipment commercial building machinery etcm
 Entrepreneurship: . It is the the designation or the ability of the individual to face the
uncertain risk while producing the goods and services to be sale in the large market.