Chapter 5 - Supply Notes

Question 1

The amount of a product that would be produced, grown, or acquired and offered or sale at all possible prices that could prevail in the market.

Answer 1

Supply

Question 2

a listing of the various quantities of a particular product supplied at all possible prices in the market.

Answer 2

Supply Schedule

Question 3

The principle that more will be offered for sale at higher prices than lower prices.

Answer 3

Law of Supply

Question 4

have a positive slope that goes up when you read the diagram from left to right. This shows that if the price goes up, the quantity supplies will go up too. Produce wants this to happen.

Answer 4

All normal supply curves

Question 5

The amount that a single producer or all producers bring to market at any given price. It’s a point on the supply curve.

Answer 5

Quantity Supplied

Question 6

A government payment to encourage or protect a certain economic activity.

Answer 6

Subsidy

Question 7

When the change in price causes a proportionally larger change in quantity supplied.

Answer 7

Elastic Supply

Question 8

A graph showing how a change in the amount of a single variable input affects total output.

Answer 8

Production function

Question 9

The entirety of output or production by a firm.

Answer 9

Total Product

Question 10

Stage 1 is increasing marginal returns where the marginal product of each additional worker increases.

Answer 10

Three Stages of Production

Question 11

is decreasing marginal returns where the total production keeps growing, but by smaller and smaller amounts. It is Negative. Marginal Returns is hiring too many workers causing total output to fall. That diminishing return becomes significant.

Answer 11

Stage 2

Question 12

best helps a firm establish profit maximizing quantity output.

Answer 12

Periodic Marginal Analysis

Question 13

Are costs that an organization has even if there is little or no activity. It’s sometimes called overhead.

Answer 13

Fixed Cost

Question 14

Are associated with machines and other capital goods, labor, and raw materials

Answer 14

Fixed Cost

Question 15

The extra cost incurred when producing one or more unit of output.

Answer 15

Marginal cost

Question 16

The average or mean price that every unit sells for.

Answer 16

Average Revenue

Question 17

is all the revenue that a business receives. If revenue from an item drops they produce less.

Answer 17

Total Revenue

Question 18

The extra revenue a business receives from the production and sale of one additional unit of output.

Answer 18

Marginal Revenue

Question 19

is business conducted over the internet.

Answer 19

E-commerce

Question 20

When prices are higher
its an

Answer 20

incentive to produce more.

Question 21

It’s the beginning of _______ that the maximum profitable number of workers becomes most apparent.

Answer 21

Stage 3

Question 22

How many Stages of Production are there?

Answer 22

3

Question 23

is increasing marginal returns where the marginal product of each additional worker increases.

Answer 23

Stage 1

Question 24

When the change in price causes a proportionally smaller change in quantity supplied.

Answer 24

Inelastic Supply