LS 9- Supply Flashcards
1
Q
What is revenue?
A
It is the income that the government or firm receive
2
Q
How do you calculate total revenue?
A
Total revenue= Price *Quantity
3
Q
What is supply?
A
Supply is the quantity of a good that a firm is willing to sell at a given price over a period of time.
4
Q
What is the law of supply?
A
As the price of a good increases
- supply of the good increases.
5
Q
What do supply diagrams assume?
A
- Firms are motivated by profit
- The cost of producing a unto increases as output increases
