Chapter 5: Supply

4. the average price that every unit of output sells for
5. production period so short that only variable input (usually labor) can be changed
6. government payment to encourage or protect a certain economic activity
9. extra cost of producing one additional unit of production
12. production level where total cost equals total revenue; production needed if the firm is to recover its costs
13. changed in the amount offered for sale in response to a price change movement along the supply curves
15. a table showing the quantities that would be produced or offered for sale at every possible price in that market at a given point in time
18. production period long enough to change the amount of variable and fixed input used in production
19. the principle that more will be offered for sale at higher prices than at lower prices
21. the sum of variables cost plus fixed cost; all costs associated w/ production
24. extra revenue from the sale of one additional unit
25. electronic business or exchange conducted over the internet
27. responsiveness of quantity supplied to a change in prices
28. specific amount offered for sale at a given price; point on the supply curve

1. costs of production that do not change when output changes
2. total output or production by a firm
3. stages of production where output increases at a decreasing rate as more units of variable input are added
7. phases of production that consist of increasing, decreasing, and negative returns
8. supply cure that shows the quantities offered at various prices by all firms that sell the same product in a given market
10. the total amount earned by a firm from the sale of its products; the average price of a good sold times the quantity sold
11. a graph that shows the quantities supplied at every possible price in the market
14. the amount of product a producer or seller would be willing to offer for sale at all possible prices in a market at a given point
16. graphic portrayal showing how a change in the amount of a single variable input affects total output
17. maximizing quantity of output-level of production where marginal cost is equal to marginal revenue
20. different amounts offered for sale at every possible price in the market; shifts of the supply curve
22. a broad category of diced costs that includes interest, rent, taxes, and executive salaries
23. extra output due to the addition of one more unit of input
26. production cost that varies as output changes; labor, energy, raw material