An Introduction to Supply
A table showing how much a producer will supply at all possible prices
What is a Supply Schedule?
A graph showing how a change in the amount of a single variable input changes total output
What is a Production Function?
Costs that remain the same regardless of level of production or services offered
What are Fixed Costs?
Total amount earned by a firm from the sale of its product
What is Total Revenue?
Phases of production that consist of increasing, decreasing, and negative marginal returns
What are Stages of Production
What is a Supply Curve?
Production period so short that only the variable inputs (usually labor) can be changed
What is the Short Run?
Broad category of fixed costs that includes rent, taxes, and executive salaries
What is Overhead?
Extra Revenue from the sale of one additional unit
What is Marginal Revenue?
Stage where output increases at a decreasing rate as more units of variable input are added
What are Diminishing Returns?
What is a Market Supply Curve?
Production period long enough to change the amounts of all inputs
What is the Long Run?
Production costs that change when production levels change
What are Variable Costs?
Decision making that compares the extra costs of doing something to the extra benefits gained
An example of a variable input
What are Workers?
Amount offered for sale at a given price
What is Quantity Supplied?
Total output or production by a firm
What is Total Product?
The sum of fixed costs and variable costs
What is Total Cost?
Level of production where marginal cost is equal to marginal revenue
Stage 1 of Production is often referred to as this
What are Increasing Marginal Returns?
Change in amount for sale when the price changes
What is Change in Quantity Supplied?
Extra output due to the addition of one more unit of input
What is Marginal Product?
Extra cost of producing one additional unit of production
What is Marginal Cost
Types of businesses that usually use Marginal Analysis
What are Corporations?
Ones business would receive this if they hire too many workers
What are Negative Marginal Returns?