Define
Extra cost of producing one additional unit of production
Marginal Cost
What stage of production will diminishing returns start?
Stage 2
One reason why the plane simulation is an form of supply
Quality control issue
Workers are working 2 minutes on something that can take weeks for a real plane to made.
Legal specifications.
What type of production would a product like a Cadbury Cream egg or a valentines heart candy be?
Short run -less variables.
Give an example of Stage 3 in real life
Examples - Restaurants after 2020
Plane simulation - rushing
Costs of supply that change with variables and circumstances
Variable Cost
Production period long enough to change amount of variable and fixed inputs used in production.
Long Run
What are these examples of: Salaries, Rent/Mortgage, or tax fees
Fixed costs often involved in Overhead Costs.
Company A is now making the same as what they are spending.
Break Even point
Give an example of something that can cause a change in supply issue and how it can affect supply?
Cost of Resources Productivity
Technology Taxes Subsidies Government Regulations Number of Sellers Expectations
Graphic portrayal showing how a change in the amount of a single variable input affects the output
Production Function
Marginal Revenue
This is an increase in total revenue generated by increase in production.
Price change of something from 1 for $3 to 2 for $4 is what?
inelastic Supply Change.
Elastic would be 1 for 3 change to 2 for 6
What does Stage 1 of production look like?
Increasing Marginal Returns with each employee added. A positive improvement.
Give an example of an inelastic supply? Product and why is it inelastic?
Gasoline
Change in output as a result of additional labor or units.
Marginal Product
Quantity Supplied
Specific amount offered for sale at a given price; point on the supply curve
This form of supply has boomed in the past 10 years and no need for a storefront.
E-Commerce
What is a supply issue that is uncontrollable for man that can wreak havoc on product?
Weather - crops are affected.
AKA - Dust bowl of the 1930s.
Problems with crop- Blueberries affected by too much rain
Give an example of a way to save costs in an out of the box way?
Cut out the middle man
Grow your own veggies/beans.
Buy the supply company
Stage of production where output increases at a decreasing rate as more units of variable inputs are added
Diminishing Return
Profit- Maximizing Quantity
Level of production where marginal revenue is equal to marginal cost
A reason for Multinational Companies?
Cheaper labor
Cheaper resources - direct from source
What are the four parts of the Law of Supply Helix?
Product Introduction: Start up/introduction to sell
Product Competition: More than one in the market
Product Update: New Updates/over competition
Product Saturation: Boredom or problems/deletion
Give an example of current government regulations or regulations in the past few years that could cause a supply problem?
Covid restrictions Covid shots required
Laws for export or import
Ukrainian war regulations