| A | B |
|---|
| supply | the amount of goods that a producer is willing/able to produce |
| Law of Supply | tendency of suppliers to offer more of a good at a higher price |
| quantity supplied | a term used to describe how much of a good is offered for sale at a specific price |
| supply schedule | a chart that lists how much of a good a supplier will offer at different prices |
| variable | a factor that can change |
| market supply schedule | a graph of the quantity supplied by all suppliers at every possible price |
| supply curve | a line on a graph showing the quantity of a good/service that producers are willing to supply at different possible prices |
| market supply curve | a graph of the quantity supplied of a good by all suppliers at different prices |
| elasticity of supply | a measure of the way quantity supplied reacts to a change in price |
| marginal product of labor | the change in output from hiring one additional unit of labor or worker |
| increasing marginal returns | a level of production in which the marginal product of labor increases as the # of workers increases |
| diminishing marginal returns | occur when marginal production level decrease with new investment |
| fixed cost | a cost that adoes not change no matter how much of a good is produced |
| variable cost | a cost that rises/falls depending on how much is produced |
| total cost | fixed cost + variable |
| marginal cost | the cost of producing 1 more unit of a good |
| marginal revenue | the additional income from selling 1 more unit of a good sometimes = the price |
| subsidy | a government payment that supports a business or market |
| excise tax | a government imposed fee on the production/sale of a good |
| regulation | government intervention in a market that affects the production of a good |
