Economics Ch. 5 Supply Vocab

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amount of a product offered for sale at all possible prices in a market
Supply Schedule
a table showing the quantities produced or offered for sale at each and every possible price in the market
Law of Supply
principle that more will be offered for sale at high prices than at lower prices
Quantity Supplied
amount offered for sale at a given price; point on the supply curve
Change in Quantity Supplied
change in amount offered for sale in response to a price change; movement along the supply curve
Change in Supply
different amounts offered for sale at each and every possible price in the Market; shift of the supply curve
government payment to encourage or protect a certain economic activity
Supply Elasticity
responsiveness of quantity supplied to a change in price
Short Run
production period so short that only inputs (usually labor) can be changed
Long Run
production period long enough to change amount of variable and fixed inputs used in production
Production Function
graphic portrayal showing how a change in the amount of a single variable input affects total output
Total Product
total output or production by a firm
Marginal Product
extra output due to the addition of one more unit of input
Stages of Production
phases of production that consists of increasing, decreasing, and negative returns
Diminishing Returns
stages of production where output increases at a decreasing rate as more units of variable input are added
Fixed Costs
costs of production that do not change when output changes
brood category of fixed costs that includes interest, rent, taxes, and executive salaries
gradual wear on capital goods
Variable Cost
production cost that varies as output changes; labor, energy, raw materials
Total Cost
variable plus fixed cost; all costs associated with production
Marginal Cost
extra cost of producing one additional unit of production
Total Revenue
total amount earned by a firm from the sale of its products; price of goods sold times quantity sold
Marginal Revenue
extra revenue from the sale of one additional unit of output
Marginal Analysis
decision making that compares the extra cost of doing something to the extra benefits gained
Categories: Vocabulary