- Production costs – a function of factor prices.
- Technology
- Government policy (taxes & subsidies)
- Natural factors/events (e.g weather, pests, diseases etc)
- Prices of other related goods (substitutes & complements)
- Transport and communication
- Political stability/atmosphere
- Future expectations
- Changes in the supply of the product with which the product in question is in joint supply e.g beef & hides; petrol & paraffin.
- Changes in the goals of a firm
- Ease of entry
- Time
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