Vocab
A certain amount of money granted by government to assist an industry or business
What is subsidy
Formula for Total Cost
What is fixed cost+variable cost.
The total income made by a firm
What is revenue
When one or more inputs is fixed.
What is short run
a graphical representation of a supply schedule
what is a supply curve
A change in quantity supplied
What is Certeris Parabus
Formula for profit
What is total revenue- total cost
Costs of inputs that do not vary with the amount of output produced
What are fixed costs
the additional cost of producing one more unit of output.
What is marginal cost
A graphical representation of the supply schedule of all firms in the market
What is a market supply curve
A table listing the quantity of goods that will be supplied at a specific time.
What is a supply schedule.
Formula for marginal revenue
What is change in total revenue/change in output
Many firms selling identical goods, firms are free to enter and exit the market
What is perfect competition
When additional workers are added and causes total output to slow decrease.
What is negative marginal returns.
A graphical representation of the supply schedule
What is supply curve
An increase in the price of goods leads to an increase in quantity supplied.
What is law of supply
Formula for revenue
What is # of output*price
The cost of inputs that do vary with the amount of output produced.
What are variable costs
The amount by which the total output increases when one more worker is hired.
What is marginal product of labor
Graph shifts to the right
What is supply increase
Total revenue a firm receives from selling its product minus total cost of producing
What is profit
Formula for marginal cost
what is change in total cost/ change in output
What is change in supply versus change in quantity supplied.
The amount of output that gives a firm as much profit as possible
What is profit maximizing level of output
Graph shifts to the left
What is supply decrease