Economics Ch. 5 Supply Vocab

amount of a product offered for sale at all possible prices in a market

a table showing the quantities produced or offered for sale at each and every possible price in the market

principle that more will be offered for sale at high prices than at lower prices

amount offered for sale at a given price; point on the supply curve

change in amount offered for sale in response to a price change; movement along the supply curve

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

responsiveness of quantity supplied to a change in price

production period so short that only inputs (usually labor) can be changed

production period long enough to change amount of variable and fixed inputs used in production

graphic portrayal showing how a change in the amount of a single variable input affects total output

total output or production by a firm

extra output due to the addition of one more unit of input

phases of production that consists of increasing, decreasing, and negative returns

stages of production where output increases at a decreasing rate as more units of variable input are added

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

production cost that varies as output changes; labor, energy, raw materials

variable plus fixed cost; all costs associated with production

extra cost of producing one additional unit of production

total amount earned by a firm from the sale of its products; price of goods sold times quantity sold

extra revenue from the sale of one additional unit of output

decision making that compares the extra cost of doing something to the extra benefits gained