Chapter 4: Supply Flashcards
1
Q
Define competitive market
A
A market in which individual firms cannot influence the price of the good or service they are selling, because of competition from other firms
2
Q
Define supply curve
A
A graph showing the quantity supplied at any given price
3
Q
Define competitive supply
A
A situation in which a firm can use its factors of production to produce alternative products
4
Q
Define joint supply
A
Where a firm produces more than one product together
5
Q
Define producer surplus
A
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
