Chapter 5 Flashcards
Supply
The amount of goods available
Law of supply
Tendency of suppliers to offer more of a good at a higher price
Quantity supplied
The amount a supplier is willing and able to supply at a certain price
Supply schedule
A chart that lists how much of a good a supplier will offer at different prices
Variable
A factor that can change
Market supply schedule
A chart that lists how much of a good all suppliers will offer at different prices
Supply curve
A graph of the quantity supplied of a good at different prices
Market supply curve
A graph of the quantity supplied of a good by all suppliers at different prices
Elasticity of supply
A measure of the way quantity supplied reacts to a change in price
Marginal product of labor
The change in output from hiring one additional unit of labor
Increasing marginal returns
Level of production in which the marginal product of labor increases as the number of workers increases
Diminishing marginal returns
Level of production in which the marginal product of labor decreases as the number of workers increases
Fixed cost
A cost that does not change, no matter how much of a good it produces
Variable cost
A cost that rises or falls depending on how much it produced
Total cost
Fixed costs plus variable costs
