| A | B |
|---|
| overhead | total fixed cost |
| fixed cost | cost that a business incurs even if plant is idle & output is zero |
| marginal revenue | extra revenur associated w/ production & sale of one additional unit of output |
| marginal product | extra output or change in total product caused by addition of one more unit of variable input |
| marginal costs | extra cost incurred when a business produces one additional unit of a product |
| elastic supply | change in price causes a large change in quantity supplied |
| inelastic supply | change in price causes a small change in quantity supplied |
| subsidy | government payment to an individual to encourage a certain type of economic activity |
| supply elasticity | measure of the way in which quantity supplied responds to a change in price |
| supply curve | graph shows various quantities supplied at every price |
| Law of supply | principle that suppliers will normally offer more for sale at high prices and less at low prices |
| change in supply | situation where suppliers offer different amounts of products for sale at all possible pirces in the market |
| technology | newer technology increases supply. It lowers the price of production or increase productivity, and it doesn't always work the right waqy and this can cause supply curve to go left |
| productivity | workers are motivated to work efficiently |
| supply | schedule of quantities offered for sale at all possible prices in a market |
| Law of Variable Proportions | rule stating that shortrun output will change as one input is varied while others are held constant |
| change in quantity supply | change in amount offered for sale in response to a price change; movement along the supply curve |
| supply schedule | tabular listing showing the quantities produced or offered for sale at each and every possible price in the market |
| cost of inputs | can cause a change in supply; if this increases, supply decreases and vice versa |
| number of sellers | can cause a change in supply; if this increases, supply increases and vice versa |
