The Law of Supply posits a direct (positive) functional relationship between the market price of a good and the quantity producers are willing to supply (ceteris paribus): as price increases, profit margins expand, incentivizing producers to supply larger quantities.

In production economics, Total Cost ($TC$) is the sum of Total Fixed Costs ($TFC$, costs independent of output such as land, ponds, and buildings) and Total Variable Costs ($TVC$, costs varying with output such as feed, seed, fuel, and labor):