Ch 5 - Supply
0.0(0)
Studied by 3 people
View linked note
Learn
Practice Test
Spaced Repetition
Match
FlashcardsCard Sorting
1/23
Study Analytics
Name | Mastery | Learn | Test | Matching | Spaced |
|---|
No study sessions yet.
24 Terms
1
New cards
Competition
________: if another product is produced with higher profit, supply for existing product decreases.
2
New cards
Variable factor
________: employment increases as output increases.
3
New cards
Supply curve
________: represents the relationship between the price and the quantity supplied of a product.
4
New cards
Total product
________: total output that a firm producers using variable and fixed factors in a given time period.
5
New cards
**Supply**
the quantity of a good or service that producers are willing and able to supply at different prices in a given time period
6
New cards
**Law of supply**
as the price of a product rises, the quantity supplied of the product will eventually increase
7
New cards
\n **Supply curve**
represents the relationship between the price and the quantity supplied of a product
8
New cards
**Non-price determinants of supply**
\
\
Changes in factors of production: (supply shifts to left) → land, labour, capital, entrepreneurship
9
New cards
Expectations
supply increases if product is expected to gain profit
10
New cards
Competition
if another product is produced with higher profit, supply for existing product decreases
11
New cards
**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
12
New cards
**Fixed factor**
employment remains constant
13
New cards
**Variable factor**
employment increases as output increases
\
\
14
New cards
Total product
total output that a firm producers using variable and fixed factors in a given time period
15
New cards
Marginal product
change in total product as a result of change in input
16
New cards
Supply
the quantity of a good or service that producers are willing and able to supply at different prices in a given time period
17
New cards
Law of supply
as the price of a product rises, the quantity supplied of the product will eventually increase
18
New cards
Expectations
supply increases if product is expected to gain profit
19
New cards
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
20
New cards
Fixed factor
employment remains constant
21
New cards
Short run
period with fixed + variable factors
22
New cards
Long run
period when all factors are variable
23
New cards
Total product
total output that a firm producers using variable and fixed factors in a given time period
24
New cards
Average product
output that is produced, an average, by each unit of the variable factor
Flashcards (20)