What can cause a change in quantity supply?
Price
What is the law of supply?
As price goes up, quantity supply will increase.
What happens to the curve if increases In subsidies?
Shifts to right
What happens to curve if technology is introduced?
Shifts right
List 5 of 7 things that cause a change in supply.
Weather, number of sellers, technology, subsidies and taxes, productivity, government regulations, cost of production
What is stage II of the production process referred to as?
Diminishing returns
What two things are proof you are in stage three?
Marginal product is negative and total production is declining
What says that if you change one input you will change output?
The law of variable proportions
During what stage does a company maximize their profits?
2nd
What two things are occurring during stage 2?
Mp and tp are going up
What are the three different types if supply elasticity?
Elastic, Inelastic, unit elastic
What determines supply elasticity
Ability to change production levels
What happens to quantity supply if price triples and product is unit elastic?
It triples
What happens to quantity supply if price doubles and product is elastic?
More than doubles
What would a supply curve look like if the product was VERY elastic?
Almost horizontal
What are three of the four different ways we measure cost?
Total cost, total variable cost, total fixed cost, and marginal cost
Overhead is another word for what?
Fixed cost
How do you calculate the new MP?
Tp1-tp2
What two things must you know to calculate the total revenue of a product?
Total production and marginal revenue
What two thugs just you know to calculate the marginal cost of an item?
Mr and mp
When tc and tr are the same, what had a firm reached?
Break even point
When does a firm need to stop hiring new employees?
When profits are highest
