Which factor most directly affects a furniture company's supply?

The correct answer is: "the price of the factors of production".

The amount of production supplied by a company is mainly affected by the price of the factors of production used in the manufacturing and commercialization procedures undertaken by the firm. There are three types of factors: land, labor and capital. The more expensive these factors are, the larger the production costs beared and the price that the company will need to fix for its products.

The law of supply states that the higher the price charged, the larger the amount of production that a company is willing to supply.

For example, in the case of a furniture company, the higher the cost of the timbers used, the higher the production costs beared and the market price and, in turn, the quantity supplied.