| A | B |
|---|
| Quantity of a good produced increases as the price rises according to the | law of supply |
| Any expense that rises or falls is a variable | cost |
| Government intervention that affects price, supply, or quality is called | regulation |
| How suppliers respond to a price change is a measure of the supply's | elasticity |
| When price is not under company control, the market, price equals the marginal | revenue |
| Government can provide support for a market in the form of a(n) | subsidy |
| The relationship between price and quantity supplied is shown in a supply | schedule |
| If adding workers increases total output at a decreasing rate, marginal returns are | diminishing |
| Output change from adding one more worker is the marginal product of | labor |
| The amount of money it takes to keep a factory open is the operating | cost |
| Variable and fixed expenses make up the | total cost |
| The amount of a good offered at a specific price is the | quantity supplied |
| The __________ cost is the additional cost of producing one more unit | marginal |
| Costs that do not change are | fixed |
| Government may tax the sale or manufacture of a good with a(n) | excise tax |
| A graph of the data points in a supply schedule creates a supply | curve |
| A factor that can change is a(n) | variable |
