Supply Flashcards
The willingness and ability of producers to offer goods and services for sale
Supply
Anyone who provides goods and services
Producer
______________ is a major factor that influences supply
Price
States that as prices decrease, supplies decrease, and as prices increase, supplies increase
Law of Supply
Table that shows how much of a good or service an individual producer is willing and able to offer for sale at each price in a market
Supply schedule
Table that shows how much of a good or service all producers in a market are willing and able to offer for sale at each price
Market supply schedule
The left-hand column of a supply schedule shows ____________
Various prices of a good or service
The right-hand column of a supply schedule shows _______________
Quantity supplied
Graph that shows how much of a good or service an individual producer is willing and able to offer for sale at each price
Supply curve
Shows that data of a market supply schedule
Market supply curve
All normal supply curves slope from the _____________ corner of the graph to the ____________________ corner
Lower left; upper right
The change in total product that results from hiring one more worker
Marginal product
Having each worker focus on a particular facet of production
Specialization
Shows the relationship between labor and marginal product
Marginal product schedule
Occur when hiring new workers cause marginal product to increase
Increasing returns
Occur when hiring new workers causes marginal product to decrease
Decreasing returns
Happen when marginal product becomes negative and total output decreases
Negative returns
Expenses that business owners must incur whether they produce nothing, little, or a lot
Fixed costs
Business costs that vary as the level of production output changes
Variable costs
The extra cost of producing one more unit
Marginal cost
The added revenue per unit of output
Marginal revenue
The income a business receives from selling a product
Total revenue
At the break-even point, total cost and total revenue are exactly _____________
Equal
The level of production at which a business realizes the greatest amount of profit
Profit maximising output
An increase or decrease in the amount of a good or service that producers are willing to sell because of a change in price
Change in quantity supplied
The relationship between price and quantity supplied is considered ___________
Direct
What are the six factors that cause a change in supply?
Input costs, labor productivity, technology, govt actions, producer expectations, and number of producers
The price of the resources needed to produce a good or service
Input costs
A tax on the production or sale of a specific good or service
Excise tax
Involves the application of scientific methods and discoveries to the production process, resulting in new products or new manufacturing techniques
Technology
The amount of goods and services that a person can produce in a given time
Labor productivity
The act of controlling business behavior through a set of rules or laws
Gout regulation
