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10 Cards in this Set
- Front
- Back
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Law of supply |
Ability and willingness of sellers to make things for sale. As a price of a good rises, the quantity supplied will rise. |
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Market supply schedule |
Shows quantity of good at each market price |
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Elasticity of supply measures... |
How changes in price affect the quantity of supply. |
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Supply is inelastic when... |
Producers cannot change production easily in the short run. |
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Decreasing marginal return |
When adding more workers will cause total production to go up at a lower rate. |
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Total fixed cost |
When fixed costs are added to the variable of cost production. |
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Most profit is earned when... |
Marginal cost= marginal revenue |
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Firms should keep producing when... |
Operating/average cost > variable cost remaining open |
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Excise tax |
When government limit the supply of that good |
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Government subsidy |
Keeps the cost of producing a product low. |
