Chapter 5 Review: Economics
Across
- 2. level of production where marginal cost is equal to marginal revenue
- 4. responsiveness of quantity supplied to a change in price
- 6. phases of production that consist of increasing, decreasing, and negative returns
- 9. costs of production that do not change when output changes
- 11. average price that every unit of output sells for
- 12. production level where total cost equals total revenue; production needed if the firm is to recover its costs
- 13. extra output due to the addition of one more unit of input
- 16. government payment to encourage or protect a certain economic activity
- 18. extra cost of producing one additional unit of production
- 20. principle that more will be offered for sale at higher prices than at lower prices
- 21. a graph that shows the quantities supplied at each and every possible price in the market
- 23. supply curve that shows the quantities offered at various prices by all firms that sell the same product in a given market
- 24. production period long enough to change amount of variable and fixed inputs used in production
- 25. broad category of fixed costs that includes interest, rent, taxes, and executive salaries
- 26. specific amount offered for sale at a given price; point on the supply curve
- 27. change in the amount offered for sale in response to a price change; movement along the supply curve
Down
- 1. total output or production by a firm
- 3. stage of production where output increases at a decreasing rate as more units of variable input are added
- 5. electronic business or exchange conducted over the Internet
- 7. total amount earned by a firm from the sale of its products; average price of a good sold times the quantity sold
- 8. production cost that varies as output changes; labor, energy, raw materials
- 10. production period so short that only variable inputs (usually labor) can be changed
- 14. a table showing the quantities that would be produced or offered for sale at each and every possible price in the market at a given point in time
- 15. sum of variable cost plus fixed cost; all costs associated with production
- 17. graphic portrayal showing how a change in the amount of a single variable input affects total output
- 18. extra revenue from the sale of one additional unit of output
- 19. amount of a product a producer or seller would be willing to offer for sale at all possible prices in a market at a given point in time
- 22. different amounts offered for sale at each and every possible price in the market; shift of the supply curve