Caleb Lanning Chapter 5

5. stage of production where output increases at a decreasing rate as more units of a variable input are added
6. sum of variable cost plus fixed cost; all costs associated with production.
9. responsiveness of quantity supplied to a change in price.
10. average price that every unit of output sell for
11. costs of production that do not change when output changes
12. change in the amount offered for sale in response to a price change; movement along the supply curve.
13. production period so short that only variable inputs can be changed
20. extra output due to the addition of one more unit of input
21. total output or production by a firm
24. production period long enough to change the amount of variable and fixed inputs used in production
25. production level where total cost equals total revenue; production needed if the firm is to recover it's cost.
26. 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.
27. extra cost of producing one additional unit of production
28. a graph that shows the quantities supplied at each and every possible price in the market.

1. extra revenue from the scale of one additional unit of output
2. supply curve that shows the quantities offered at various prices by all firms that sell the same product in a given market.
3. principle that more will be offered for sale at higher prices than at lower prices.
4. phases of production that consist of increasing, decreasing, and negative returns
7. level of production where marginal cost is equal to marginal revenue
8. brood category of fixed costs that included interest, rest, taxes, and executive salaries
14. specific amount offered for sale at a given price; point on the supply curve.
15. production cost that varies as output changes; labor, energy, raw materies
16. 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
17. graphic portrayal showing how a change in the amount of a single variable input affects total output
18. electronic business or exchange conducted over the internet
19. total amount earned by a firm from the scale of its products; average price of a good sold times the quantity sold.
22. different amounts offered for sale at each and every possible price in the market; shift of the supply curve
23. government payment to encourage or protect a certain economic activity