A More Practical Method for Explaining Supply

Abstract

To rewrite our economics textbooks, we must begin by describing more realistically what is occurring for a producer. Moreover, when uncertainty or risk is taught, the Markowitz portfolio theory must be referred to for association. This study shows that, by applying both elements of the expected rate of return on investment and portfolio theory, a vast range of supply issues, including several from accounting to management and production to economic development, can all be logically explained.