Chapter 5

Created by mvp930 

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supply

the amount of goods available

law of supply

tendency of suppliers to offer more of a good at a higher price

quantity supplied

the amount a supplier is willing and able to supply at a certain price

supply schedule

a chart that lists how much of a good a supplier will offer at different prices

variable

a factor that can change

market supply schedule

a chart that lists how much of a good all suppliers will offer at different prices

supply curve

a graph of the quantity supplied of a good at different prices

market supply curve

a graph of the quantity supplied of a good by all suppliers at different prices

elasticity of supply

a measure of the way quantity supplied reacts to a change in price

marginal product of labor

the change in output from hiring one additional unit of labor

increasing marginal returns

a level of production in which the marginal product of labor increases as the number of workers increases

diminishing marginal returns

a level of production in which the marginal product of labor decreases as the number of workers increases

fixed cost

a cost that does not change, no matter how much of a good is produced

variable cost

a cost that rises or falls depending on how much is produced

total cost

fixed costs plus variable costs

marginal cost

the cost of producing one more unit of a good

marginal revenue

the additional income from selling one more unit of a good; sometimes equal to price

operating cost

the cost of operating a facility, such as a store of factory

subsidy

a government payment that supports a business or market

excise tax

a tax on the production or a sale of a good

regulation

government intervention in a market that affects the production of a good

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