Key Terms Chapter 5

2. the price of the resources needed to produce a good or service.
4. a measure of how responsive producers are to price changes.
5. business costs that vary as the level of production output changes.
6. This level of output is reached when the marginal cost and the marginal revenue are equal.
8. expenses that the owners of a business must incur whether they produce nothing, a little, or a lot.
9. is the added revenue per unit of output.
11. Having each worker focus on a particular facet of production.
13. the amount of goods and services that a person can produce in a given time.
19. shows the data from the market supply schedule.
20. occurs when something prompts producers to offer different amounts for sale at every price.
21. a graph that shows how a change in the price of a good or service affects the quantity a seller supplies.
22. The change in total product that results from hiring one more worker.
23. a tax on the production or sale of a specific good or service.
24. the additional cost of producing one more unit of their product.
25. the act of controlling business behavior through a set of rules or laws, can also affect supply.

1. is the income a business receives from selling a product.
3. the total amount of a specific good or service that is available to consumers.
7. fixed and variable costs added together.
10. states that producers are willing to sell more of a good or service at a higher price.
12. an increase or decrease in the amount of a good or service that producers are willing to sell because of a change in price.
14. as each new worker causes total output to grow but at a decreasing rate.
15. each new worker adds more to the total output than the last.
16. a chart that lists how much of a good all suppliers will offer at various prices.
17. a table that shows the quantity supplied at each price.
18. involves the application of scientific methods and discoveries to the production process.