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Supply
chapter 5
| Question | Answer |
|---|---|
| What is the main motivation for producers? | profit |
| Supply is from the viewpoint of which group? | producers |
| According the the Law of Supply, producers supply more based on; | price |
| The relationship between supply and price is; | direct |
| rivalry between businesses that sale the same product | competition |
| the revenue received from selling one more of the product | marginal revenue |
| the production cost of producing one more of the product | marginal cost |
| The main concern of producers; | cost of production |
| The change in output that one more worker makes | marginal product of labor |
| cost that does not change | fixed cost |
| cost that changes as production changes | variable cost |
| fixed plus variable cost | total cost |
| government payment that supports a business or market | subsidy |
| government intervention in a market that affects the production of a good | regulation |