What is supply?
What is the definition of supply?
The willingness and ability of producers to offer goods and services for sale
What do fixed and variable costs do?
Fixed costs remain the same; variable costs depend on how much is produced
The amount of goods and services that a person can produce in a given time is called
Labor productivity
The ease of changing production to respond to price change determines:
How elastic the supply is
What is a supply schedule?
Table that shows how much of a good or service an individual producer will offer for sale at each price
The additional expense of producing one more unit of a product is called:
Marginal cost
Profit maximizing output is reached when:
marginal revenue and marginal cost are equal
What increases the elasticity of supply for most goods and services?
Time
When price increases:
quantity supplied increases
The change in total output that results from hiring one additional worker is called:
Marginal product
What types of products are excise tax placed on?
Products the government doesn't want people to use
If a car maker finds out the rubber to make wheels is going to go up in price, what will they do?
Plan to produce slightly fewer cars after the prices go up
An upward slope, bottom left to top right
Marginal revenue is also known as the:
Price
What happens when the number of producers increases?
There is more competition and less efficient producers are driven out of the market
Which types of industries tend to take a great deal of time to shift the resources of production to respond to price changes?
Those that rely on large capital outlays
How is a market supply curve different from a supply curve?
A market supply curve shows all of the producers in a market and what they are willing to offer at each price
Total cost is the sum of:
fixed costs and variable costs
How does excise tax impact supply?
Increasing producers' costs and discouraging production
Name two types of industries that take a long time to adjust supply when price changes:
Auto makers and oil refiners