Chapter 5 Vocabulary Review

The amount of a product that would offered for sale at different prices. Supply

More quantity will be offered for sale at high prices while less quantity will be offered at lower prices. Law of Supply

Change in Quantity Supplied. Which one of these involves movement along a stable supply curve caused by a change in price only? Change in Supply or Change in Quantity Supplied? Change in Quantity Supplied.

Which one of these involves a shift of the supply curve caused by a non-price factor (remember NICEPP)? Change in Supply or Change in Quantity Supplied? Change in Supply.

A table showing the quantities produced or offered for sale at each price and every possible price in the market at a given point in time. Supply Schedule

A graph that shows the quantities supplied at each and every possible price in the market. Supply Curve

Supply curve that shows the quantities offered for sale at various prices by all firms at each and every price in the market. Market Supply Curve

The responsiveness of quantity supplied to a price change. Supply Elasticity

A production period long enough to change the amount of both variable and fixed input costs used in producing products. Long Run

A production period so short that only variable inputs (usually costs like labor) can be changed. Short Run

A government payment to a producer (supplier of products) to encourage or protect certain economic activity. Subsidy

This is found by adding together all variable and fixed costs associated with production. Total Cost

Electronic business or exchange conducted over the internet. E-Commerce

Amount offered for sale at a given price; A point on the supply curve Amount offered for sale at a given price; A point on the supply curve. On the graph it is shown as a movement along a stable curve. Quantity Supplied

Different amounts offered for sale at each and every possible price in the market; It is shown on the graph as a shift of the entire curve. Change in Supply

Change in Quantity Supplied On the graph it is shown as a movement along a stable curve. It is the change in the amount offered for sale in response to a price change of that product. . Change in Quantity Supplied

What does marginal mean in economics? Next Unit. For example: Marginal Cost, Marginal Revenue, or Marginal Product.

The extra output due to the addition of one more unit of input (like a worker or labor). Marginal Output

The extra-cost of producing one additional unit of output.. Marginal Cost

The extra revenue (money) from the sale of one more unit of output. Marginal Revenue

The costs of production that do not change when output changes. Fixed Costs

The broad category of fixed costs that includes interest paid on loans, rent, taxes, and executive salaries. Overhead

The production cost that varies as output changes. Variable Costs

Profit Maximizing Quantity of Output The level of production where marginal cost is equal to marginal revenue. Profit Maximizing Quantity of Output

The total output or production by a firm (company). Total Product

The average price that every unit of output sells for. Average Revenue

The total amount earned by a company (a firm) from the sale of products. It is the average price of a good times the quantity sold. Total Revenue

The stage of production where output increases at a decreasing rate as more units of inputs of variable inputs are added. Diminishing Returns

The phases or stages of production that consist of increasing, decreasing, and negative returns.

The production level where total costs equals total revenue The production level where total costs equals total revenue. It is the production level needed if the company is to recover its costs. Break-Even Point

A graphic portrayal showing a change in the amount of a single variable input (or cost) affects total output. Production Function