Econ ch 5

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  1. Supply
    Amount of product that would be offered for sale at all possible prices that could prevail in the market.
  2. Law of Supply
    Principle that suppliers will normally offer more for sale at high prices and less at lower prices
  3. Supply Schedule
    Listing of the various quantities of a particular product supplied at all possible prices in the market
  4. Supply Curve
    Graph showing the various quantities supplied at each and every price that might prevail in the market
  5. 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
  6. Quantity Supplied
    Amount that producers bring to market at any given price
  7. Change in quantity supplied
    Change in amount offered for sale in response to a chance in price
  8. Change in supply
    Situation where suppliers offer different amounts of products for sale at all possible prices in the market.
  9. Subsidy
    Government payment to an individual, business, or other group to encourage or protect a certain type of economic activity
  10. Supply Elasticity
    Measure of the way in which quantity supplied responds to a change in price
  11. The Three Elasticities
    Supply Curve, Inelastic supply curve, unit supply curve
  12. Theory of production
    relationship between the factors of production and output of goods and services.
  13. Short Run
    Period of production that allows producers to chance only the amount of the cariable input called labor
  14. Long run
    Period of production long enough for producers to adjust the quantities of all their resources, including capital
  15. Law of Variable Proportions
    in short run, output will chance as one input is varies while the others are held constant
  16. Production Function
    Concept that describes the relationship between changes in output to different amounts of a single input while other inputs are held constant
  17. Raw Materials
    Unprocessed natural products used in production
  18. Total Product
    Total output produced by firm
  19. Marginal Product
    Extra output or chance in total product caused by the addition of one more unit of cariable input.
  20. Stages of production
    Increasing returns, diminishing returns, and negative returns
  21. Diminishing Returns
    Stage where output increases at a diminishing rate as more units of a variable input are added
  22. Fixed cost
    Cost that a business incurs even if the plant is idle and output is zero
  23. Overhead
    Total fixed cost
  24. Variable Cost
    A cost that changes when the business rate of operation or output changes
Card Set
Econ ch 5
econ vocab ch 5
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