Chapter 5 Key Terms All 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
A level of production in which the marginal product of labor increases as the number of workers increases.
Diminishing marginal returns
A level of production in which the marginal product of labor decreases at the number of workers increases.
Fixed cost
A cost that does not change, no matter how much of a good is produced.
Variable cost
A cost that rises or falls depending on how much is produced.
Total cost
Fixed costs plus variable cost.
