3-1
Anyone who provides goods or services.
Producer
Total output grows at a decreasing rate. (marginal product decreases)
Diminishing returns
Expenses that vary as level of output changes
Variable Cost
Money made from sale of each additional unit sold
Marginal Revenue
Price Change causes
CQS
Amount of product all producers willing, able to offer at each price.
Market Supply Schedule
Change in total output caused by adding one worker
Marginal Product
Expenses owners incur no matter how much they produce
Fixed cost
Marginal cost and marginal revenue are equal
Profit-maximizing output
Tax on specific good or service.
Excise Tax
Willingness and ability of producers to offer goods, services.
Supply
New workers cause marginal product increase.
Increasing returns
Additional cost of making one more unit of the product
Marginal Cost
Income from selling a product
Total Revenue
6 factors cause
CS
Producers willing to sell more of product at higher price than at lower price.
Law of Supply
Having a worker focus on one aspect of production
Specialization
Sum of fixed and variable costs
Total cost
Total Revenue minus total cost=
Profit
Rules or laws to control business behavior
Regulation
Amount of product individual willing, able to offer at each price.
Supply Schedule
Total output decreases
Negative returns
divide change in total cost by change in total product.
Marginal Product
Total Revenue=Total Cost
Break Even Point
Payments to help cover costs
Subsidies