Economics chapter five vocab

Supply
Click the card to flip 👆
1 / 25
Terms in this set (25)
technologyAnything designed by man to make a job easier.increased productivity and efficientexpectationsBeliefs of what will happen in some future situationshort runA period of insufficient time to alter all factors of production used in the productive process - at least one input is fixed (usually plant and equipment.)long runA period of sufficient time to alter all factors of production used in the productive process - all inputs can be changed.elasticA measure of the responsiveness of quantity demanded or quantity supplied to a change in one of its determinantsinelasticDescribes demand that is not very sensitive to a change in pricesupply elasticityresponsiveness of quantity supplied to a change in priceraw materialsUnprocessed natural products used in productionlaw of variable proportionsstates that, in the short run, output will change as one input is varied while the others are held constantfixed costsCosts that do not vary with the quantity of output producedtotal costsFixed Costs + Variable Costse-commerceBusiness conducted electronically (buying/selling on web)marginal costsThe cost of producing one more unit of a goodbreak even pointpoint at which total revenue and total cost are equaltotal revenuePrice x Quantity