Chapter 5: Supply Flashcards
law of supply
tendency of suppliers to offer more of a good at a higher price
supply
the amount of goods available
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 chang ein 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 as 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 costs
