# Econ ch 5

 The flashcards below were created by user gerardcb on FreezingBlue Flashcards. Supply Amount of product that would be offered for sale at all possible prices that could prevail in the market. Law of Supply Principle that suppliers will normally offer more for sale at high prices and less at lower prices Supply Schedule Listing of the various quantities of a particular product supplied at all possible prices in the market Supply Curve Graph showing the various quantities supplied at each and every price that might prevail in the market Market Supply Curve Supply curve that shows the quantities offered at various prices by all firms that offer the product for sale in a given market Quantity Supplied Amount that producers bring to market at any given price Change in quantity supplied Change in amount offered for sale in response to a chance in price Change in supply Situation where suppliers offer different amounts of products for sale at all possible prices in the market. Subsidy Government payment to an individual, business, or other group to encourage or protect a certain type of economic activity Supply Elasticity Measure of the way in which quantity supplied responds to a change in price The Three Elasticities Supply Curve, Inelastic supply curve, unit supply curve Theory of production relationship between the factors of production and output of goods and services. Short Run Period of production that allows producers to chance only the amount of the cariable input called labor Long run Period of production long enough for producers to adjust the quantities of all their resources, including capital Law of Variable Proportions in short run, output will chance as one input is varies while the others are held constant Production Function Concept that describes the relationship between changes in output to different amounts of a single input while other inputs are held constant Raw Materials Unprocessed natural products used in production Total Product Total output produced by firm Marginal Product Extra output or chance in total product caused by the addition of one more unit of cariable input. Stages of production Increasing returns, diminishing returns, and negative returns Diminishing Returns Stage where output increases at a diminishing rate as more units of a variable input are added Fixed cost Cost that a business incurs even if the plant is idle and output is zero Overhead Total fixed cost Variable Cost A cost that changes when the business rate of operation or output changes Authorgerardcb ID106297 Card SetEcon ch 5 Descriptionecon vocab ch 5 Updated2011-10-25T04:35:24Z Show Answers