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Related Flashcards
Related Topics
Cards In This Set
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Supply
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The amount of goods available
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Law of supply
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The higher the price, the larger the quantity produced
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Quantity supplied
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How much of a good is offered for sale at a specific price
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Supply schedule
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Shows relationship between price and quantity supplied for a specific good
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Variables
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Factors that can change
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Market supply schedule
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Shows the relationship between prices and the total quantity supplied by all firms in a particular market
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Supply curve
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A graph of the quantity supplied of a good at different prices; x-axis measures quantity of the good supplied
**Always rises from left to right. |
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Market supply curve
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Graph of the quantity supplied of a good by all suppliers at different prices
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Elasticity of supply
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A measure of the way quantity supplied (or suppliers) reacts to a change in price
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Marginal product of labor
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The change in output from hiring one more worker
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Increasing marginal returns
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A level of production in which the marginal product of labor increases as the number of workers increases
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Diminishing marginal returns
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A level of production in which the marginal product of labor decreases as the number of workers increases
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Fixed cost
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Cost that does not change, no matter how much of a good is produced
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Variable costs
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Costs that rise or fall depending on the quantity produced
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Total cost
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Fixed costs plus variable costs
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