Útboðsmagn

Útboðsmagn, also known as supply in English, refers to the total amount of a particular good or service that is available in the market at a given price and time. It is one of the fundamental concepts in economics, alongside demand, and is crucial for understanding market dynamics. Supply can be influenced by various factors, including production costs, technology, natural resources, and government policies. In a perfectly competitive market, firms are price takers, meaning they must accept the market price as given. However, in monopolistic or oligopolistic markets, firms have some degree of control over pricing, which can affect their supply decisions. The law of supply states that, all else being equal, an increase in price leads to an increase in the quantity supplied, and a decrease in price leads to a decrease in the quantity supplied. This relationship is typically depicted on a supply curve, which shows the positive relationship between price and quantity supplied. Understanding útboðsmagn is essential for analyzing market equilibrium, price determination, and the overall functioning of the economy.