Chapter 5 Review: Economics

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