Impact of Input, Cost, Perfect Competition and Highly Competitive Market on Supply of Goods and Services: A Case Study of Aston Martin in UK Economy

Harvard

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK-1............................................................................................................................................3
Input and cost impact the production decisions...........................................................................3
Economic concepts......................................................................................................................5
TASK-2............................................................................................................................................6
Perfect competition or a highly competitive market impact supply of goods and services........6
CONCLUSION................................................................................................................................8
REFERNCES...................................................................................................................................9

INTRODUCTION
Economic decision includes different factors such as, production, distribution, exchange,
consumption, saving and investment of economic resources (Chien, Dou and Fu, 2018). Aston
Martin is a public limited company which was founded in the year 1913 by Lionel Martin and
Robert Bamford. They are providing good quality products to customers and earn more profit.
The report examines, when and why do inputs and cost impact production decision related to
supply of goods and services. Economic concepts are used from within the UK economy
between 2010 and 2019. Further, impact of perfect competition or a highly competitive market
impact supply of goods and services.
TASK-1
Input and cost impact the production decisions
In an organisation there are many factors which affect performance of company and it is
the responsibility of managers to handle all the activities. In company, there should be proper
production of goods so that need of customers can be satisfied and profit can be earned by
company. Input and cost impact the production decision related to supply of goods and services.
These are the two elements which affect production decision for how much goods and services
should be supply. Input is affecting production decision as increase in price of input leads to
decrease in supply because when price of input goes up then cost of making good is also
increases (Mathiyazhagan, Sengupta and Poovazhagan ,2018). This affect supply of goods and
services because when price of input is increased then companies are not making products and
supply of good and services is decreased. When there is decrease in price of inputs then it lead to
increase in supply.
It is the responsibility of manager to make proper plans so that goods and services can be
provided to people on time and more revenue can be generated. There are different factors which
affect supply of goods and services like, price, number of suppliers, state of technology,
government subsidies, weather conditions, availability of workers. These affect supply of good
and services because if prices of input is increased then there is decrease in supply and when
prices are decreased then it leads to increase in supply. Aston Martin is one of the well-known
company which provides good quality products and services to customers. They are making
product as per need of customer and input affect production decision of managers. When prices