Module 2: TERMS- Supply Flashcards
The factor of production that is the stock of non-material elements such as machines, buildings and equipment used to produce goods and services
Capital
A type of firm with a legal existence distinct from that of its owners that is managed and operated by a board of directors.
Corporation
The factor of production among for-profit firms that is the implementation of an idea of how to use the land, labor and capital to make a profit
Enterprise
Out-of-pocket costs actually made for labor, capital and land and natural resources.
Explicit costs
Resource few reqyuored to produce and supply goods and services
Factors of production
An entity organized for the purpose of producing goods or providing sevoces. Firms can be either for-profit enterprises or non-profit organizations
Firm
Expenditures that do not change regardless of the level of production
Fixed costs
The situation when people have an incentive to let others pay for a public good and then use the good or receive the service without paying
Free rider program
The opportunity cost to the entrepreneur or owner of a for-profit enterprise using personal time and resources and/or personal resources already owned by the firm
Implicit costs
The situation when the demand curve is not a straight line but had a different slope for higher and lower prices
Kinked demand
The amount of human physical and mental effort used to produce goods and services
Labor
All nature, living in lifeless, to induce minerals, used to produce goods and provide
Land and natural resources
The economic principle that as price increases quantity supplied
Law of supply
A type of firm with the legal existence distinct from that of its owners that is managed and operated by members
Limited liability corporation
The change by the change in the quantity of output
Marginal cost
The change in revenue when one additional unit of product is sold
Marginal revenue 
The value to the firm from a change in one additional input of labor computed as the market price times marginal product
Marginal value 
A type of firm organize to supply goods and services for charitable purposes
Non-profit organizations
A type of firm of from 2 to 20 partners, who jointly owned a business, sharing profits, and being jointly responsible for any losses
Partnership 
The economic principle that firms maximize profits by producing at the output level where marginal revenue is equal to marginal cost
Profit-maximizing rule 
OK the difference between the producers ability to supply and the market price
 Producer surplus
A cash concept that is the difference between total revenues and total costs
Profit
A type of firm owned by a single individual who is fully entitled to the income of the business, and it’s fully responsible for any losses, a business suffers
Proprietorship 
A product or service provided by a government to everyone without exclusion
Pure public good
