Chapter 5 Supply Economics Vocab

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amount of a product of firm for sale at all possible prices
law of supply
principle that more will be offered for sale at higher prices than at lower prices
supply schedule
table showing how much a producer will supply at all possible prices
supply curve
graph that shows the different amounts of a product supplied over a range of possible prices
market supply curve
graoh that shows the various amounts offered by all firms over a range of possible prices
quantity supplied
amount offered for sale at a given price
change in quantity supplied
change in amount offred for sale in response to a change in price
change in supply
situation where different amounts of good for sale at all possible prices in the market; shift of the supply curve
government payment to protect a certain economic activity
supply elasticity
measure of how quanity supplied responds to a change in price
theory of production
deals with the relationship between the factors of production and the ouput of goods and services
production preriod so short that only the variables can be changed
production period long enough to chang ethe amounts of all inputs
Law of variable proportions
states that, in the short run,outpu will change as one input is varied while the others are held constant
production function
graph showing how a change in the amount of a single variable input changes total output
raw materials
unprocessed natural products used in production
total product
total out put of production by a firm
marginal product
extra output due to the additon of one more unit of input
stages of production
phases of production that consits of increase, positive and negative marginal returns
diminishing returns
stages where output increases at a decreasing rate as more units of variable input are added
fixed costs
costs that remain the same regarless of level of production or services offred
broad category of fixed costs that include rent, taxes and executive saleries
varaible costs
production costs that change when production levels change
total cost
the sum of fized costs and variable costs
marginal costs
extra costs of producing one aditional unit of product
electronic buisness computed via internet
break-even point
production level where total costs equals total revenue
total revenue
total amount earned by a firm from the sale of its products
marginal revenue
extra revenue from sale of additional output
marginal analysis
decision making that compares the extra cost of doing something to the extra benifits
product marginalizing quantity of output
level of production where marginal cost is equal to marginal revenue
Categories: Vocabulary