Production Decisions in UK Manufacturing: Inputs, Costs & Competition

This report analyzes production decisions in UK manufacturing between 2010 and 2019, focusing on how input costs and market structures impact the supply of goods and services. It discusses the relationship between prices and supply, examining the role of land, labor, capital, and entrepreneurship as key inputs. The report further explores the concept of perfect competition, using the UK manufacturing industry as a case study to illustrate its effects on supply. It differentiates between short-run and long-run production decision-making, considering factors like marginal cost, revenue, and economies of scale. The analysis also touches upon the impact of trade unions and government policies on the overall economic growth and supply dynamics within the UK manufacturing sector. Desklib provides this assignment solution and other resources for students.

Production decisions in UK
manufacturing between 2010
to 2019

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 study that helps in decision making related to the square resources and
these are being used for the production of goods and services in the marketplace so that they can
generate a profitability. Supplies defined an amount that is being offered to the prospective buyer
by understanding their needs and wants so the manufacturer must focuses on keep updating
themselves in order to offer the product which can meet the current trends of the market. The
report is based on the cost and the inputs that is needed for the further production by taking the
consideration of UK economy. It also evaluate the certain production decision which is
impacting the overall supply in the large market of UK and it will evaluate the supply of
commodities within the manufacturing sector as well.
TASK
Why inputs and costs impact the supply of goods and services in terms of production decisions.
Supply: It is the given amount of commodity that is being offered by the company to
their potential buyer with the aim of generating higher value and scale what is establishing a
good brand image in the market. It is the general concept which says that increase in the prices
will directly impact the supply of the given good and the large market and they are of them
goods and services that can be the current trend of the marketplace. This choose the positive
relationship between the prices and the quantity supplied of the commodity as the price increases
the company will apply more at the time of generating more revenue in the market. The cost of
production includes raw material labour which directly impact in increasing the overall
production cost. It is refers to the quantity supplied by the company for meeting the needs and
wants of their bhaiya in the target mark it is that amount of which is being offered by the firm
with the aim of generating higher revenue and profitability highlighting the current trends of
market so that they can establish a good brand image in the marketplace.
Law of supply: it shows that there is a positive relationship between the prices and the
quantity supplied in the market. Its supplement increase in the prices of goods leads to rise
overall supply of the product in the market. On other hand decrease in the prices of the
commodity tense to reduce the overall supply in the large market.

According to the above the supply curve it is at that increased in the prices of product
impact the rise in the aural supply of the commodity. The given graph is upward sloping. When
the prices of the certain goods was at P3 then the supply of the firm is also at Q3. This impact
due to increase in the prices of goods which leads to to increase the overall so quantity supply in
the market.
Inputs: These are the aspects which has divided into four parts such as land labour capital and
entrepreneurship that helps in analysing the overall gross domestic product in UK.
 Land: These are the input which is being used by the companies to their infrastructure
but when it's come to the economic level of the national economy it become the wider
concept and includes the solar energy, river ocean that are included in renewable and
nonrenewable sources. These aspects helps in maintaining eco friendly environment
within the organisation and leading to the higher growth and profitability.
 Labour: Such aspect which is concerned for the abilities of the employees which is being
used by them in order to conduct their given job role for producing goods and services.
These attributes are basically depends upon the age working and the population. Ability
of the work done by the employee can be measured by evaluating the overall output
given by them in their specific job role.
 Capital: These are the certain resources that is being used by the companies for
producing product and services and includes commercial building equipments machinery
etc.
 Entrepreneurship: t is the certain job position or the authority which can be kept by the
individual by having some set of ability to face the uncertain risk in order to open their
own venture and produce goods and services to be for the sale in the market.
Costs: The overall expenses which has been incurred on the manufacturing of goods and
services are called the cost of the product. This also includes raw material labour cost and
manufacturing expenses.
Production Decisions: These are the certain consideration taken by the entrepreneur so that
they can manage the needs and wants of the customer and also ensures the benefits for the
company as well.
Impact on the production Decisions:

 Labour charges: Employees are the most valuable resources for any organisation as
they use their integrated set of skills in order to offer the product and services that can be
for the sale in the market for generating a higher profits. These are the decisions that are
being taken to supply the product and services within the set time frame and also
contribute to the welfare of the employees which ultimately reflect in increasing gross
domestic product of the UK economy. Total production of the commodity that is being
sale in the market helps in improving the overall standards of living of the society.
further, increase in the faces of the employees and reduce the overall cost of goods. When
the prices of the factor of production increases it directly impact the overall GDP and the
national income that already have been seen in 2010 during the recession there was
insufficient supply of goods and services in the market.
 Capital: The supply of goods and services can be increased or decreased due to the
passage of time this is important for the supplier to take the appropriate decisions related
to the supply and the various market segment. They must have the proper infrastructure
so that they can give a proper work environment to their employees and also contribute to
the development of UK economy. For this, government bodies issued the budget in order
to give the certain resources when they are required that can negatively impact in the
flow of money within the UK market as there is no effective management and decision
making from the top level management.
 Raw materials: these are main components of factor of production so the has to be given
on time so that there would not be no delay in the production of product and services due
to which the whole economy have to suffered and needs to get reduction in the national
income of UK. The UK is the most affected economy in the year of 2020 due to
unavailability of raw materials by which nation has to face huge losses.
 Entrepreneurship: It is related to the willingness and the opportunity that can be gained
by the individual for a specific job position with the aim of running their own business
venture. The respect alliances are being formed against the government bodies and there
is a sort of of distortion in the country which leads to have turn down the overall
economic growth of the UK. This also implies due to the the mis management and Rome
decision making related to the production. Trade unions were formed that influence the
overall quantity supply in the large market.

Explain the perfect competition market and how it impact the supply of goods and services by
applying in any UK based industry.
Perfect competition is defined as a market structure that is having large number of buyer and
seller who is presenting their portfolio in an cost effective management of certain resources of
economics. It also act as a serving partners as they are meeting the competition with other brands
by offering similar product. This is the formatting assessment in which competitors are at their
highest possibility level in the consideration of offering homogeneous product to their existing
buyer. All the prices that are being fixed by the marketer on the basis of the market rate. It is the
perfection which shows the existence of companies in the external areas and also leads to incline
with the same product to be for the sale in the market within the given time period.
Supply curve in the Perfect Competition:
This is the supply curve in perfect competition which is presenting the overall
proportioning of marginal cost that is present in the cost graph and also showing the the least of
mean changeable pricing that is the the mixture of total cost marginal cost and the revenue which
can be used by the form in order to enhance their profitability and the target market. Marginal
revenue and total revenue are the certain terms which defines the profit ratio of any company in
the market.
 Short-run Manufacturing Decision-making:
It is the given time frame in which the one factor is always fixed and the other is having
variability in their nature. There are three factors that can influence the decision making in short
run that are shutdown of the certain process costing variable and the revenue. This is a highly
competitive market which shows that cost curve line is at or above the shutdown point that is
also reflecting the economic level of manufacturing industry in the market.

The above showing curve showing the short term supply curve in the perfect competition. It
has been evaluated that the line that stay above or at the shutdown point showing the overall
profit margin of the company. When the form is not having overall consideration to the specific
market and the graph line is also below the particular point so it is not related to the product
range which is being manufactured by them.
 Long-run Production Decision-making: these are the factors that is related to the time
in which costing and the manufacturing of the goods are variable. This factor also
evaluate the overall category in the marketplace as the series of existing market short run
curve. It is having the connection between the certain point that are invariant to the
market over a specific period of time. These are also having three factors which are
covered in the productivity cycle and given below:
1. Increasing return to scale.
2. Constant scaling-return.
3. Decreasing returns to scaling.

As per the given graph it is shown that manufacturing companies are majorly effecting
due to the revenue and profitability and short-term are supernormal benefit in nature they are
having specific condition of proficiency in the long run production within the industry.
Manufacturing industry of UK:
There are business ventures that are producing goods and services in the UK market are very
diverse. It is made up of different range of product that includes FMCG goods technological
aspects and furniture which are having significance value in the economic growth of the
company and reflect the value and production that is leading to generate more income to the
nation. Manufacturing industry is the third largest industry in the UK.
Impact of the perfect competition market in supply:
 Prices: These are the main determinants of any organisation that are offering product and
services in the market and no one has the power to change the prices of the commodity at
their own. Thus, it is vital for the forms to have more consideration while fixing their
prices with in the set period of time frame. For example, IKEA, is the manufacturing
company which is dealing in assemble furnitures so they have to supply their product and
services on particular prices in order to meet the needs and wants of their potential buyer.
They have to sell the prices of goods and services till then when the prices and the cost of

the product are at same point which means demand of the item is equal to the product
sale in the market.
 Competition: Large group of competitors takes place in the market who are offering
certain types of goods and services and getting uniqueness in their commodities. Is there
is a rapid increase in the number of competitors which are being influenced by the buyer
and seller. The given prices of the certain product to the manufacturing companies when
will low and cost and higher and quality so that they can meet the satisfaction level of the
consumer while they are purchasing the certain goods and services. On the same time, the
competitors also decrease the prices of their products so that they can effectively with the
competition and grip the large customer base which implies in the the economic
condition of the UK and can serve the large number of buyer in the long run market.
 Maximize profit: Every organisation is operating with the aim of having higher
profitability by which they can sustain in the market and generate more revenue. They
also focuses on reducing the cost and considering the overall supply curve in the
manufacturing industry.
 Number of sellers:There is the high effect in the UK economy which also sustaining in
the market. There are large number of seller who are offering goods and services with
same pattern and it is shown that large number of companies are offering homogeneous
good in the large marketplace. Due to no barrier in the entry and exit of the form which
gives the great opportunity in order to to supply more goods and generate more revenue
by completing their rivals in the market.
CONCLUSION
from the above discussion it is concluded that supply of goods and services reflect the
overall economic development in the market as the companies are are making best use of their
resources so that they can offer best product to their consumer. Land labour capital and the
factors which influence the overall economy of UK and inputs are the basis for every venture
that also ensure the supply of given goods to be done within the set time frame so that they can
contribute in the gross domestic product at the national income of UK. Furthermore production
decision the main significance and supplying the product. Perfect competition market and what's
homogeneous product are being sold and computers are getting uniqueness in order to sustain in

the market for long period of time which gradually contribute to the economic development of
the market.

REFERENCES
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