Vocab
what is Perfect Competition
an ideal type of market structure where all producers and consumers have full and symmetric information and no transaction costs.
in regards to supply, what happens to quantity when prices increase
Goes up
how to find total cost
fixed cost + Variable cost
How would the supply curve shift for ice-cream, if the price of milk goes up 30 cents a gallon?
curve would shift left. (cost of inputs)
What is supply curve
a graph that shows how a change in the price of a good or service affects the quantity a seller supplies
What is Subsidy
a benefit given to an individual, business, or institution, usually by the government
What would cause the supple curve to shift to the left
All of the sub sandwich shops in Muncie close
How to find Marginal Cost
Change in total cost (divided by) change in output
When the supply curve shifts, this is called a change in supply or a change in quantity supplied.
change in supply
Supply Schedule
a table that shows the quantity supplied at each price
what is Marginal Cost
the change in total production cost that comes from making or producing one additional unit.
What type of cost is rent
Fixed cost
What is the term for payment made by the government to support a particular activity.
Subsidies
Law of Supply
An increase in the price of goods or services results in an increase in their supply
What is short VS long run
Short: a concept that states that, within a certain period in the future, at least one input is fixed while others are variable.
Long: a period of time where all factors of production and costs are variable
What would cause the supple curve to move to the left
The workers are unmotivated
how to find Profit
Total Revenue- total cost
The term for "all else constant." Under this condition, other influences remain unchanged when the price of the good changes.
ceteris paribus
Quantity Supplied
the number of goods or services that suppliers will produce and sell at a given market price
What is Variable Cost
Overhead costs are associated with ____ costs
fixed!
Price of product
You create your own prices!
A ____ of the supply curve is 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.
a shift
Perfect Competition
occurs when there are many sellers , there is easy entry and exiting of firms, products are identical from one seller to another and sellers are price takers