Vocabulary List 4
Economics / Mr. Henry
Vocabulary List 4
Economics / Mr. Henry
supply- amount of a product offered for sale at
all possible prices
supply- amount of a product offered for sale at
all possible prices
Law of Supply- principle that more will be
offered for sale at higher prices than at lower
prices
Law of Supply- principle that more will be
offered for sale at higher prices than at lower
prices
Market Supply Curve- a graph that shows the
various amounts offered by all firms over a
range of possible prices
Market Supply Curve- a graph that shows the
various amounts offered by all firms over a
range of possible prices
subsidy- government payment to encourage or
protect a certain economic activity
subsidy- government payment to encourage or
protect a certain economic activity
supply elasticity- a measure of how the
quantity supplied responds to a change in price
supply elasticity- a measure of how the
quantity supplied responds to a change in price
short run- production period so short that only
the variable inputs (usually labor) can be
changed
short run- production period so short that only
the variable inputs (usually labor) can be
changed
long run- production period long enough to
change the amounts of all inputs
long run- production period long enough to
change the amounts of all inputs
marginal product- extra output due to the
addition of one more unit of input
marginal product- extra output due to the
addition of one more unit of input
diminishing returns- stage where output
increases at a decreasing rate as more units of
variable input are added
diminishing returns- stage where output
increases at a decreasing rate as more units of
variable input are added
overhead- broad category of fixed costs that
includes rent, taxes, and executive salaries
overhead- broad category of fixed costs that
includes rent, taxes, and executive salaries
variable costs- production costs that change
when production levels change
variable costs- production costs that change
when production levels change
marginal cost- extra cost of producing one
additional unit of production
marginal cost- extra cost of producing one
additional unit of production
break-even point- production level where total
cost equals total revenue
break-even point- production level where total
cost equals total revenue
total revenue- total amount earned by a firm
from the sale of its products
total revenue- total amount earned by a firm
from the sale of its products
marginal revenue- extra revenue from the sale
of one additional unit of output
marginal revenue- extra revenue from the sale
of one additional unit of output
marginal analysis- decision making that
compares the extra costs of doing something to
the extra benefits gained
marginal analysis- decision making that
compares the extra costs of doing something to
the extra benefits gained
profit-maximizing quantity of output- level of
production where marginal cost is equal to
marginal revenue
profit-maximizing quantity of output- level of
production where marginal cost is equal to
marginal revenue