Chapter 5 Flashcards
(6 cards)
1
Q
Law of supply
A
States that producers are willing to sell more of a good or service at a higher price than they are at a lower price.
2
Q
Fixed cost
A
Expenses that business owners incur no matter how much they produce
3
Q
Variable cost
A
Business costs that vary with the level of production output
4
Q
Total cost
A
Sum of fixed and variable costs
5
Q
Excise tax
A
Tax on production of sale of a specific good or service
6
Q
Supply
A
Willingness and ability of a producer to produce and sell a product
