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law of supply
tendency of suppliers to offer more of a good at a higher price. (If prices increase, so does quanitity and vice versa. If the demand for technologies increases, so will the amount and price.)
the amount a supplier is willing and able to supply at a certain price. (Sometimes firms can't keep up with the demand because of limited factors.)
a chart that lists how much of a good a supplier will offer at different prices. (know the chart.)
market supply schedule
a chart that lists how much of a good all suppliers will offer at different prices (same chart as supply schedule, just higher numbers.)
market supply curve
a graph of the quantity supplied of a good by all suppliers at different prices (same graph, higher numbers.)
marginal produce of labor
the change in output from hiring one additional unit of labor. (1 person can make 4 bags per hour, a second person raises it goes to 10. The marginal product is 6.)
increasing marginal returns
a level of production in which the marginal product of labor increases as the number of workers increases. (More workers equals more output.)
diminishing marginal returns
a level of production in which the marginal product of labor decreases as the number of workers increases. (If there are a limited number of machines, the business will experience this.)
a cost that does not change, no matter how much of a good is produced. ( Revolve around production of facility; rent, property taxes.)
a cost that rises or falls depending on how much is produced. (to produce more beanbags, a company must hire more workers and buy more beans. Cost of labor, electricity, heat.)
the cost of producing one more unit of a good. (If a firm produces only one bean bag, then it still has the fixed cost. This can decrease the firms profit.)
the addition income from selling one more unit of a good; sometimes equal to the price.(The point where marginal cost and revenue meet is the best level of output. Know curve.)
a government payment that supports a business or market. (Government pays certain industries to underproduce to keep prices low.)
a tax on the production or sale of a good. (increases production costs by adding an extra cost, used to discourage sale of goods that could harm the good, like alcohol or cigarettes.)
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