Vocab
what is the total revenue a firm makes from selling its goods - the total cost of making it.
Profit
What is a shift?
the result of a change in the quantity supplied at every price, not to be confused with a movement along the supply curve, which is the result of a change in the price.
example of a decrease in supply
a shift to the left of the entire supply curve.
What is Fixed cost?
the cost of inputs that do not vary with the amount of output produced
When we move along a supply curve we call the resulting change in the quantity producers want to sell...
a change in the quantity supplied.
What is perfect competition?
when there are many firms selling identical goods, firms are free to enter and exit the market, and consumers have full information about the price and availability of goods.
What is a change in supply?
When the supply curve shifts, this is called a change in supply or a change in quantity supplied.
How would the supply curve shift if the government raises the minimum wage to $8 an hour?
government regulation
What is Marginal cost?
the additional cost of producing one more unit of output. It is calculated as the change in total cost divided by the change in output.
What is marginal Cost
The profit maximizing output level is the amount of output that gives a firm as much profit as possible
The ________ ___ _______, shows that a increase in the price of a good leads to an increase in the quantity supplied.
Law of Supply
What is ceteris paribus?
"all else constant."
what would happen if there was a natural disaster? (increase or decrease)
decrease
What is diminishing marginal productivity?
the decrease in the marginal product of a variable input, such as labor, as more and more of it is combined with a fixed input, such as equipment.
How would the supply curve shift if there are new regulations from the government?
decrease
What is the supply schedule
its a table listing the quantity of the good that will be supplied at specified prices.
What are Subsidies?
a payment made by the government to support a particular activity.
what does "fixed" mean
the period of time during which the quantity of at least one input
what does the total cost mean
the entire amount the firm must spend to produce a specified amount of output
What is marginal revenue
the additional revenue a firm receives from selling another unit of output.
What is the Quantity Supplied
the amount of a good that firms are willing to supply at a particular price over a given period of time
what way will the graph shift if it decreases?
left
what is a variable
when the quantities of all inputs
Total Revenue formula
Price x output
What is the marginal product of labor
the amount by which total output increases when one more worker is hired