Chapter 5

6. extra cost of producing one additional unit of production
7. level of production where marginal cost is equal to marginal revenue
10. production cost that varies as output changes; labor, energy, raw materials
12. specific amount offered for sale at a given price; point on the supply curve
14. electronic business or exchange conducted over the Internet
17. total output or production by a firm
18. total amount earned by a firm from the sale of its products; average price of a good sold times the quantity sold
21. government payment to encourage or protect a certain economic activity
23. supply curve that shows the quantities offered at various prices by all firms that sell the same product in a given market
25. production period long enough to change amount of variable and fixed inputs used in production
26. graphic portrayal showing how a change in the amount of a single variable input affects total output
27. principle that more will be offered for sale at higher prices than at lower prices
28. a graph that shows the quantities supplied at each and every possible price in the market

1. costs of production that do not change when output changes
2. change in the amount offered for sale in response to a price change; movement along the supply curve
3. production period so short that only variable inputs (usually labor) can be changed
4. average price that every unit of output sells for
5. broad category of fixed costs that includes interest, rent, taxes, and executive salaries
8. extra output due to the addition of one more unit of input
9. sum of variable cost plus fixed cost; all costs associated with production
11. 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
13. 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
15. extra revenue from the sale of one additional unit of output
16. phases of production that consist of increasing, decreasing, and negative returns
19. stage of production where output increases at a decreasing rate as more units of variable input are added
20. production level where total cost equals total revenue; production needed if the firm is to recover its costs
22. responsiveness of quantity supplied to a change in price
24. different amounts offered for sale at each and every possible price in the market; shift of the supply curve