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30 Cards in this Set
- Front
- Back
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supply
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the amount of a product that would be offered for sale at all possible prices that could prevail in the market.
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Law of supply
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the principle that suppliers will normally offer more for sale at high princes and less at lower ones.
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supply schedule
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a listing of the various quantities of a particular product supplied at all possible prices in the market
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supply curve
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a graph showing the various quantities supplied at each and every price that might prevail in the market
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Market supply curve
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the supply curve that shows the quantities offered at various prices by all firms that offer the product for sale in a given market
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quantity supplied
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ONLY AFFECTED BY PRICE! the amount that producers bring to market at any given price.
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change in quantity supplied
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is the change in amount offered for sale in response to a change in price.
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Change in supply
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a situation where suppliers offer different amounts of products for sale at all possible prices in the market .
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supply elasticity
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is a measure of the way in which the quantity supplied responds to a change in price
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theory of prodcution
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deals with the relationship between the factors of production and the output of goods and services.
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short run
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a period of production that allows producers to change only the amount of the variable input called labor
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long run
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a period of production long enough for producers to adjust the quantities of all their resources , including capital.
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Law of variable proportions
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states that in the short run out put will change while one input is varied and others held constant
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`production function
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describes the relationship between changes in output compared to changes in a single input
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raw materials
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unprocessed , natural products used in production
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total product
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total output produced by the firm .
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marginal product
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extra output or change in total product caused by the addition of one more unit variable input.
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three stages of production
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increasing returns, diminishing returns and negative returns. marginal product change as labor does.
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diminishing returns
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the stage (2) where output increases at a diminishing rate as more units of a variable input are added.
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fixed cost
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cost that a business incurs even if the plant is idle.
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fixed cost
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cost that a business incurs even if the plant is idle
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overhead
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total fixed cost
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variable cost
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changes with the business rate of operation.
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marginal cost
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extra cost incured to produce 1 extra unit.
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e-commerce
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electronic commerce, internet exchange
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total revenue
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total units sold (X) avg. price per unit.
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marginal revenue
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extra revenue with production of 1 more unit.
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marginal analysis
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cost benefit decision making
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break even point
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the total product output a business has to sell in order to cover its total costs.
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Profit - maximizing quantity of output
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when marginal costs and marginal revenue are equal.
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