econ test chp. 5

Total product

total output or production by a firm

Supply schedule

a table showing the quantities that would be produced or offered for sale at each and every possible price in the market at a given point in time

Subsidy

government payment to encourage or protect a certain economic activity

Quantity supplied

specific amount offered for sale at a given price; point on the supply curve

Production function

graphic portrayal showing how a change in the amount of a single variable input affects total output

Marginal cost

extra cost of producing one additional unit of production

Law of supply

principle that more will be offered for sale at higher prices than at lower prices

E-commerce

electronic business or exchange conducted over the Internet

Supply

amount of a product a producer or seller would be willing to offer for sale at all possible prices in a market at a given point in time

Average revenue

average price that every unit of output sells for

What would happen to a producer if total revenue began to drop?

produce less of that item

What is the influence of high prices on behavior of producers?

high price is an incentive for a product to offer more

Which industry has the least elastic supply curve?

the nuclear industry

What do producers of an item hope to achieve when adopting new technologies?

​a shift of the supply curve for that item to the right

What is the stage of production when "diminishing returns" first becomes significant

Stage 2

What stage of production does maximum profit number of workers become apparent?

Stage 1

What is the change in total income when one additional unit of an output is added?

Marginal revenue

Are fixed costs and overhead similar?

Yes

What is the term associated with machines and other capital goods?

fixed cost

What is the term that best enables a firm to establish its profit-maximizing quantity of output?

periodic marginal analysis