| A | B |
|---|
| Production function | Relates changes in output to differnt amounts of a variable input |
| inputs | Raw materials needed for production |
| supply | Amount of product sellers offer at every possible price |
| overhead | A fixed cost |
| marginal analysis | Evaluation of extra costs and extra benefits of an action |
| supply curve | Graphic picture of supply schedule |
| negative returns | Third stage of production |
| marginal product | Extra output gained by adding one more unit of input |
| short run | Period of production that allows change only to the amount of variable inputs |
| total revenue | Units sold times average price per unit |
| Law of Supply | Quantity supplied varies directly with price |
| supply elasticity | What happens to quantity supplied when price changes |
| total cost | Fixed costs plus variable costs |
| subsidy | Government payment to protect some economic activity |
| Law of variable proportions | Describes relationship between input and output |
| break-even point | Total revenue equals total cost |
| variable costs | Expenses change as output changes |
| diminishing returns | A stage of production |
| quantity supplied | Amount producers bring to market at a set price |
| fixed costs | Expenses that do not change with changes in production |
