Activator230822
Verified member
When for instance the government reduces tax levied on producers this can lower the cost of production hence motivating more and more producers to increase the production.
The government can increase subsidies so that it can meet a certain percentage of the production costs. This can make the production more affordable and more appealing to the producers hence they can produce more quantities.
The government can eliminate quotas on production in the sense of not limiting the quantity of goods to be produced, then the producers are free to supply as much as they can to the market.
Setting favourable producer prices- The government can set policies and procedures that can encourage the emergency of new producers
on board like the expansion of the existing o producers.
When the government is in a position to facilitate the marketing of the products like forming agencies that buy products from the producers and setting the best prices for the products can lead to the increased production.
The government can increase subsidies so that it can meet a certain percentage of the production costs. This can make the production more affordable and more appealing to the producers hence they can produce more quantities.
The government can eliminate quotas on production in the sense of not limiting the quantity of goods to be produced, then the producers are free to supply as much as they can to the market.
Setting favourable producer prices- The government can set policies and procedures that can encourage the emergency of new producers
on board like the expansion of the existing o producers.
When the government is in a position to facilitate the marketing of the products like forming agencies that buy products from the producers and setting the best prices for the products can lead to the increased production.
