Supply Shifters
The price of peanuts decreases thus causing a change in the supply of peanut.
Change in Input cost
Taxes
added expense of the tax causes the supply curve to shift to the left
Law of Supply
As the price of a good or service increases, the quantity of goods or services increases
Perfect competition?
Identical products- no barriers
The Short Run
Period of Time during which
the quantity of at least one input is
fixed.
Automobile manufacturers today uses thousands of robots for spot welding, painting, assembly , and other tasks, instead of having to pay employees like in the past.
change in technology
Regulations
restrictions on firms and indviduals
Change in Supply
entire curve shifts
Profit
the total revenue a firm receives from selling its
product minus the total cost of producing it.
The Long Run
the Period of Time in which the
quantities of all inputs are variable.
A sudden hurricane wiped out half the Florida orange crop.
change in conditions due to natural disasters
Subsides
a payment made by the government to support a particular activity. Rightward Shift.
Quantity supplied
the amount of a good that firms are willing to supply
at a particular price over a given period of time.
THE MARKET
SUPPLY CURVE
The sum of the two firm’s
willingness to supply makes up
the quantity supplied for the
market.
If a restaurant wants to serve more people in the short run
it buys more advertising and food to prepare.
more labor and materials
A business opens four new stores in very populated cities
Supply curve shifts right- Change in number of firms
increase in quanitity supplied
increase in price
Production
Schedule
indicates the inputs needed to
produce different quantities of
output.
If a resturant wants to serve people in the long run
bigger resturant more locations
capital purchases
Seller expects prices to fall in the future, and is eager to sell now.
change in producer expectations
profit maximizing output level
the amount of output that gives a firm as much
profit as possible
fixed cost+ variable cost
fixed- the cost of inputs that do not
vary with the amount of output
produced. varaible- do vary bc outputs
marginal product of labor
the amount by which total output increases when one more worker is hired. when marginal product is negative, employing more workers actually causes total
output to fall.