Economics Ch. 5 Flashcards
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| 472754145 | Supply | defined as the amount of a product that would be offered for sale at all possible prices that could prevail in the market | |
| 472754146 | Law of Supply | the principle that suppliers will normally offer more for sale at high prices and less at lower prices | |
| 472754147 | Supply curve | a graph showing the various quantities supplied at each and every price that might prevail in the market | |
| 472754148 | Supply schedule | a listing of the various quantities of a particular product supplied at all possible prices in the market | |
| 472754149 | Market supply curve | the supply curve that shows the quantities offered at various prices by all firms that offer the product for sale in a given market | |
| 472754150 | Quantity supplied | the amount that producers bring to market at any given price | |
| 472754151 | Change in quantity supplied | the change in amount offered for sale in response to a change in price | |
| 472754152 | Change in supply | a situation where suppliers offer different amounts of products for sale at all possible prices in the market | |
| 472754153 | Subsidy | a government payment to an individual, business, or other group to encourage or protect a certain type of economic activity | |
| 472754154 | Supply elasticity | a measure of the way in which quantity supplied responds to a change in price | |
| 472754155 | Theory of production | deals with the relationship between the factors of production and the output of goods and services | |
| 472754156 | Short run | a period of production that allows producers to change only the amount of the variable input called labor | |
| 472754157 | Long run | a period of production long enough for producers to adjust the quantities of all their resources, including capital. | |
| 472754158 | Law of variable proportions | states that output will change as one input is varied while the others are held constant | |
| 472754159 | Production function | a concept that describes the relationship between changes in output to different amounts of a single input while other inputs are held constant | |
| 472754160 | Raw materials | unprocessed natural products used in production | |
| 472754161 | Total product | total output produced by the firm | |
| 472754162 | Marginal product | the extra output or change in total product caused by the addition of one more unit of variable input | |
| 472754163 | Stages of production | phases of production--increasing, decreasing, and negative returns | |
| 472754164 | Diminishing returns | the stage where output increases at a diminishing rate as more units of a variable input are added | |
| 472754165 | Fixed cost | the cost that a business incurs even if the plant is idle and output is zero | |
| 472754166 | Overhead | total fixed cost | |
| 472754167 | Variable cost | cost that changes when the business rate of operation or output changes | |
| 472754168 | Total cost | the sum of the fixed and variable costs | |
| 472754169 | Marginal cost | the extra cost incurred when a business produces one additional unit of a product | |
| 472754170 | E-commerce | electronic business or exchange conducted over the Internet | |
| 472754171 | Total revenue | the number of units sold multiplied by the average price per unit | |
| 472754172 | Marginal revenue | the extra revenue associated with the production and sale of one additional unit of output | |
| 472754173 | Marginal analysis | a type of cost-benefit decision making that compares the extra benefits to the extra costs of an action | |
| 472754174 | Break-even point | the total output or total product the business needs to sell in order to cover its total costs | |
| 472754175 | Profit-maximizing quantity of output | reached when marginal cost and marginal revenue are equal |