Econ Chapter 5 Supply

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1. supply
A relation showing the quantities of a good producers are willing and able to sell at various prices during a given period, OTC.
2. law of supply
The quantity of a good supplied during a given time period is usually directly related to its price, OTC.
3. supply curve
A curve, or line, showing the quantities of a particular good supplied at various prices during a given time period, OTC.
4. elasticity of supply
A measure of the responsiveness of quanitity supplied to a price change; the percent change in quantity supplied divided by the percent change in price.
5. movement along a supply curve
Change in quantity supplied resulting from a change in the price of the good, OTC.
6. shift of a supply curve
Increase or decrease in supply resulting from a change in one of the determinants of supply other than the price of the good.
7. short run
A period during which at least one of a firm's resources is fixed.
8. long run
A period during which all of a firm's resources can be varied.
9. total product
The total output of the firm per period.
10. marginal product
The change in total product resulting from a one-unit change in a particular resource, all other resources constant.
11. law of diminishing returns
As more of a variable resource is added to a given amount of other resources, marginal product eventually declines and could become negative.
12. fixed cost
Any production cost that is independent of the firm's output.
13. variable cost
Any production cost that changes as output changes.
14. total cost
The sum of fixed cost and variable cost.
15. marginal cost
The change in total cost resulting fro a one-unit change in output, the change in total cost divided by the change in output.
16. marginal revenue
The change in total revenue from selling another unit of the good.
17. economies of scale
Forces that reduce a firm's average cost as the firm's size, or scale, increases in the long run.
18. long-run average cost curve
A curve that indicates the lowest average cost of production at each rate of output when the firm's size is allowed to vary.
 Author: playher ID: 203593 Card Set: Econ Chapter 5 Supply Updated: 2013-02-26 20:55:06 Tags: supply elasticity Folders: Description: Key terms for Supply. Show Answers: