Studied by 2 peopleCompetition
________: if another product is produced with higher profit, supply for existing product decreases.
Variable factor
________: employment increases as output increases.
Supply curve
________: represents the relationship between the price and the quantity supplied of a product.
Total product
________: total output that a firm producers using variable and fixed factors in a given time period.
Supply
the quantity of a good or service that producers are willing and able to supply at different prices in a given time period
Law of supply
as the price of a product rises, the quantity supplied of the product will eventually increase
\n Supply curve
represents the relationship between the price and the quantity supplied of a product
Non-price determinants of supply
Changes in factors of production: (supply shifts to left) → land, labour, capital, entrepreneurship
Expectations
supply increases if product is expected to gain profit
Competition
if another product is produced with higher profit, supply for existing product decreases
The law of diminishing marginal returns
as more variable factors are added to a given quantity fixed factors, holding tech constant, marginal product eventually drops
Fixed factor
employment remains constant
Variable factor
employment increases as output increases
Total product
total output that a firm producers using variable and fixed factors in a given time period
Marginal product
change in total product as a result of change in input
Supply
the quantity of a good or service that producers are willing and able to supply at different prices in a given time period
Law of supply
as the price of a product rises, the quantity supplied of the product will eventually increase
Expectations
supply increases if product is expected to gain profit
The law of diminishing marginal returns
as more variable factors are added to a given quantity fixed factors, holding tech constant, marginal product eventually drops
Fixed factor
employment remains constant
Short run
period with fixed + variable factors
Long run
period when all factors are variable
Total product
total output that a firm producers using variable and fixed factors in a given time period
Average product
output that is produced, an average, by each unit of the variable factor
Note 
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