Supply

Question 1

Law of supply

Answer 1

P up QD up P down QD down

Question 2

Examples of fixed cost

Answer 2

Rent/mortgage, fire insurance, salaries

Question 3

Examples of variable cost

Answer 3

Raw materials, hourly wage, utilities, bonuses

Question 4

Which variable cost is the most variable for suppliers

Answer 4

Labor

Question 5

Calculate total  Cost

Answer 5

FC + VC

Question 6

Calculate marginal cost

Answer 6

TC this row minus TC last row

Question 7

Calculate average total cost

Answer 7

TC divided by Q

Question 8

Calculate the total revenue

Answer 8

Q times MR

Question 9

Calculate profit

Answer 9

TR minus TC

Question 10

Formula for profit maximizing quantity of output

Answer 10

MC equals MR

Question 11

Break even point

Answer 11

No losses and no profits

Question 12

Black

Answer 12

Making profit

Question 13

Red

Answer 13

Losing profit

Question 14

Short run

Answer 14

Some costs are fixed and some are variable

Question 15

Long run

Answer 15

All costs are variable

Question 16

Subsidy

Answer 16

When government gives you a good or service or cash

Question 17

Marginal product

Answer 17

Dividing the change in output by the change in labor used

Question 18

Seven factors of shift supply homes (seven determinants of supply)

Answer 18

Change in cost of outputs
Change in worker productivity
Change in technology
Change in tax or subsidy
Change in producer price expectation
Changing government regulation
Change in number of sellers

Question 19

Study elastic it inelastic curse

Answer 19

Very inelastic supply - Huge change in price results in tiny change in quantity supply
Perfectly inelastic supply- Large change in price results in no change in quantity supply
Unit elastic supply- change in price results in equal change in quantity supply
Very elastic supply-Tiny change in price results in huge change in quantity supply