Chapter 4 Flashcards
Competitive Market
A market in which individuel frims cannot influence the price of a good or service they are selling, because of competition from other firms
What is the supply curve
A graph showing the quantity supplied at any given price
What shifts the supply curve
Costs of production, the technology of production(innovations etc), taxes and subsidies, price of other goods, expected future prices and number of firms in the market
Competitive supply
a situation in which a firm can use its factors of production to produce alternative products. (flour or self-raising flour)
Joint supply
When a firm produces more than one product together
What is producer surplus
The difference between the price received by firms for a good or service and the price at which they would have been prepared to supply that good or service
What does producer surplus provide an incentive for
It incentivises producers to adjust the quantity supplied in response to a change in the price
What is individual supply
Individual supply is the supply that a producer is willing and able to sell at a given price in a given period of time
What is market supply
The market supply is the sum of all individual supplies in a market
What shifts supply
PINTSWC
Productivity
Indirect taxes
Number of firms
Technology
SUbsidies
Weather
Costs of production
Depreciation
