Supply and Marginal Cost Flashcards
what is the supply curbe also called
the willingness to recieve curve or marginal cost curve
what is marginal cost
the change in cost when an additional unit of good is produced
on the graph where is the sellers cost of production reflected
minimum price reflects the sellers cost of production
what is producer surplus
the difference between what a producer is willing to recieve (cost of production) verse what they actually recieve
The difference between selling price and market price
what increases producer surplus and what happens when it does increase
if market price rises due to increase in demand, there will be an increase in producer surplus because producers will sell more at a higher price therefore economic welfare will increase
what is the formula for producer surplus
total revenue - total cost of production
what is the formula for total revenue
price x quantity
