Supply Flashcards
1
Q
supply definition
A
the amount of goods and services that producers are willing and able to sell at any time
2
Q
law of supply
A
as price increases, quantity supplied increases
as price decreases, quantity supplied decreases
3
Q
determinants of supply
A
Competition Resource cost Regulation of gov Efficiency Expected price change Profit
4
Q
variable costs
A
costs that rise or fall with production levels
5
Q
fixed cost
A
costs that do not change no matter how much is produced
6
Q
total cost
A
fixed cost + variable cost
7
Q
setting output
A
responding to price changes
8
Q
marginal revenue
A
additional revenue from adding one more unit
9
Q
marginal cost
A
additional cost of adding one more unit
10
Q
profit maximizing output
A
marginal revenue = marginal cost
11
Q
calculating profit
A
new revenue - total cost
12
Q
calculating marginal cost
A
new total cost - old total cost
13
Q
calculating revenue
A
price X number sold
