Higher incomes have much more influence on the way people eat (more meat, less bread) than on the amount they eat.
With changed prices the consumer has to change the quantities he demands if he is to maintain utility at the same level.
Real income is the amount of the goods and services a consumer can buy with his money income.
A consumer is a person who consumes the products and services he buys.
The price at the time the good is ready for marketing may be different from the price at the time the decision to produce it was made.
3. Переведите текст Theory of Supply и отработайте его чтение.
4. Найдите в тексте:
определительные придаточные предложения, присоединенные к главному предложению без союзного слова (последний абзац);
причастие II в постпозиции (второй абзац);
причастные обороты (третий, четвертый, девятый абзацы);
одиночные причастия, употребленные в качестве левого определения к существительному (второй и седьмой абзацы).
TEXT
Theory of Supply
The theory of supply is the theory of how much output firms choose to produce. The principal assumption of the supply theory is that the producer will maintain the level of output at which he maximizes his profit.
Profit can be defined in terms of revenue and costs. Revenue is what the firm earns by selling goods or services in a given period such as a year. Costs are the expenses which are necessary for producing and selling goods or services during the period. Profit is the revenue from selling the output minus the costs of inputs used.
Costs should include opportunity costs of all resources used in production. Opportunity cost of a commodity is the amount obtained by an input in its best alternative use (best use elsewhere). In particular, costs include the owner's time and effort in running a business. Costs also include the opportunity cost of the financial capital used in the firm.
Aiming to get higher profits, firms obtain each output level as cheaply as possible. Firms choose the optimal output level to receive the highest profits. This decision can be described in terms of marginal cost and marginal revenue.
Marginal cost is the increase in total cost when one additional unit of output is produced.
Marginal revenue is the corresponding change in total revenue from selling one more unit of output.