Final answer:
The creation of a production order does not directly result in consumers having access to a larger variety of goods at lower prices. This outcome is an indirect effect of market dynamics such as technological improvements or increased competition, which are not immediate results of a single production order.
Step-by-step explanation:
The creation of a production order does not directly result in consumers benefiting from the increased productivity through a larger variety of goods available at lower prices. The outcomes from establishing a production order mainly focus on the internal and immediate impacts on the firm, such as setting in motion the manufacturing process, allocating resources, and scheduling work. However, the indirect effects arising from a series of production orders and their successful execution—such as technological improvements or increased number of sellers—can, over time, lead to a situation where consumers might benefit from lower prices and increased product variety due to economy of scale effects and market competition.
Key decisions involved in production that affect the firm's behavior include costs of production, prices of related goods in production, sellers' expectations, and the number of sellers. A technological improvement can reduce the costs of production, which tends to shift the supply curve to the right, potentially resulting in temporary higher profits. Conversely, an increase in wages can lead to higher production costs, economic losses for some firms, and a potential leftward shift of the supply curve, raising market prices. However, these market dynamics primarily affect firms and the broader market rather than directly impacting consumers at the point of production order creation.