supply
the amount of goods available
law of supply
producers offer more of a good as its price increases and less as its price falls
quantity supplied
the amount a supplier is willing and able to supply at a certain price
supply schedule
a chart that lists how much of a good a supplier will offer at various prices
variable
a factor that can change
market supply schedule
a chart that lists how much of a good all suppliers will offer at various prices
supply curve
a graph of the quantity supplied of a good at various prices
market supply curve
a graph of the quantity supplied of a good by all suppliers at various prices
elasticity of supply
a measure of the way quantity supplied reacts to a change in price
marginal product of labor
the change in output from hiring one additional unit of labor
increasing marginal returns
a level of production in which the marginal product of labor increases as the number of workers increases
diminishing marginal returns
a level of production in which the marginal product of labor decreases as the number of workers increases
fixed cost
a cost that does not change, no matter how much of a good is produced
variable cost
a cost that rises or falls depending on the quantity produced
total cost
the sum of fixed costs plus variable costs.
marginal cost
the cost of producing one more unit of a good
marginal revenue
the additional income from selling one more unit of a good; sometimes equal to price
average cost
the total cost divided by the quantity produced
operating cost
the cost of operating a facility, such as a store or factory
subsidy
a government payment that supports a business or market
excise tax
a tax on the production or sale of a good
regulation
government intervention in a market that affects the production of a good