Chapter 5 Vocab Flashcards
The amount of goods available
Supply
Tendency of suppliers to offer more of a good at a higher price
Law of supply
The amount a supplier is willing and able to supply at a certain price
Quantity supplied
A chart that lists how much of a good a supplier will offer at different prices
Supply chart
A factor that can change
Variable
A chart that lists how much of a good all suppliers will offer at different prices
Market supply schedule
A graph of the quantity supplied of a good at different prices
Supply curve
A graph of the quantity supplied of a good by all suppliers at different prices
Market supply curve
A measure of the way quantity supplied reacts to a change in price
Elasticity of supply
The change in output from hiring one additional unit of labor
Marginal product of labor
A level of production in which the marginal product of labor increases as the number of workers increases
Increasing marginal returns
A level of production in which the marginal product of labor decreases as the number of workers increases
Diminishing marginal returns
A cost that does not change, no matter how much of the good is produced
Fixed cost
A cost that rises or falls depending on how much is produced
Variable cost
Fixed costs plus variable costs
Total cost
The cost of producing one more unit of a good
Marginal cost
The additional income from selling one more unit of a good, sometimes equal to price
Marginal revenue
The cost of operating a facility, such as a store or factory
Operating cost
A government payment that supports a business or market
Subsidy
A tax on the production or sale of a good
Excise tax
Government intervention in a market that affects the production of a good
Regulation
