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21 terms

Chapter 5

STUDY
PLAY
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