Supply Flashcards
Supply
Amount of goods available
Law of Supply
Tendency of suppliers of offer more of a good at a higher price
Quantity Supplied
Amount a supplier is willing and able to supply at a certain price
Supply Schedule
Chart that lists how much of a good a supplier will offer at different prices
Variable
Factor that can change
Market Supply Schedule
Chart that lists how much of a good all suppliers will offer at different prices
Supply Curve
Graph of the quantity supplied of a good by all suppliers at different prices
Elasticity of Supply
Measure of the way quantity supplied reacts to a change in price
Marginal Product of Labor
Change in output from hiring one additional unit of labor
Increasing Marginal Returns
Level of production in which the marginal product of labor increases as the number of workers increases
Diminishing Marginal Returns
Level of production in which the marginal product of labor decreases as the number of workers increases
Fixed Cost
Cost that does not change, no matter how much of a good is produced
Variable Cost
Cost that rises or falls depending on how much is produced
Total Cost
Fixed cost + variable costs
Marginal Cost
Cost of producing one more unit of a good
