Chapter 5 Flashcards
(24 cards)
Supply
the desire and ability to produce and sell a product
Law of Supply
when prices decrease, quantity supplied decreases, and when prices increase, quantity supplied increases
Supply Schedule
a table that lists how much of a good or service an individual producer is willing and able to offer for sale at each price
Market Supply Schedule
how much of a good or service all producers in a market are willing and able to offer for sale at each price
Supply Curve
shows the data from a supply schedule in graph form
Market Supply Curve
shows the data from a market supply schedule in graph form
Marginal Product
the change in total output brought about by adding one more worker
Specialization
having a worker focus on a particular aspect of production
Increasing Returns
when hiring new workers causes the marginal product to increase
Diminishing Returns
when hiring new workers causes marginal product to decrease
Fixed Costs
costs that business owners incur no matter how much they produce
Variable Costs
depend on the level of production output
Total Costs
the sum of fixed and variable costs
Marginal Cost
the extra cost of producing one more unit
Marginal Revenue
the money made from the sale of each additional unit of output
Total Revenue
a company’s income from selling its products
Profit-Maximizing Output
the level of production at which a business realizes the greatest amount of profit
Change in Quantity Supplied
a rise or fall in the amount producers offer for sale because of a change in price
Change in Supply
when a change in the marketplace prompts producers to sell different amounts at every price
Input Costs
the price of the resources used to make products
Labor Productivity
the amount of goods and services that a person can produce in a given time
Technology
applying scientific methods and innovations to production
Excise Tax
a tax on the making or selling of certain goods or services
Regulation
a set of rules or laws designed to control business behavior
