CHPT 5 Definitions Flashcards
Supply
the amount of goods available
Law of Supply
Producers offer more of a good as its price increases and less as its price falls
Quantity Supplied
the amount a supplier is willing and able to supply at a specific price
Supply Schedule
A chart that lists how much of a good a supplier will offer at various prices
Variable
a factor that can change
Market Supply Schedule
a chart that lists how much of a good all suppliers will offer at various prices
Supply Curve
A graph of the quantity supplied of a good at various prices
Market Supply Curve
A graph of the quantity supplied of a good by all suppliers at varioius prices
Elasticiy 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 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 producition at which the marginal product of labor decreases as the numer of workers increases
Fixed costs
A cost that doesn’t change, no matter how much of a good is produced
Variable costs
a cost that rises and falls depending on the quantitiy produced
Total Costs
the sum of fixed cost and variable costs
