| Vocab | Short answer | Other stuff | More Vocab | Vocab again |
|---|---|---|---|---|
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What is variable
Factors that can change.
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If your company makes a concentrated product where would you locate your factory?
In Big town
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What is the formula for calculating average cost?
divide the sum of variable costs and fixed costs by the quantity of units produced.
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What is market supply skedaddle
All of the supply schedules of individual firms in a market added up.
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What is Elasticity of supply
Firms are more flexible in the long run.
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What is inflation
Major rise in price.
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How did the airplane affect the supply of imported goods?
It made it so goods could be transported much faster and to different places.
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What is the formula for profit?
Total revenue- total cost
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What is marginal revenue
Additional income from selling one more unit of a good.
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What is law of supply
Producers offer more of a good as its price increases and less as its price falls.
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What is Regulation
Government intervention in a market that affects the price, quantity, or quality of a good.
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What factors would a company losing money used to determine if they should shut down a factory?
If the total cost is more than the total revenue
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What happens to a company when marginal cost becomes higher than prices?
They lose a ton of money
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What is fixed cost
A cost that does not change.
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What is diminishing marginal returns
Produce less and less output from each additional unit of labor.
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What is quantity supplied
The amount of a product supplied.
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Why does marginal product of labor become negative when the 8th worker is hired?
Because then you would not be making money at that point.
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When would it make sense for a factory losing money to stay open?
When the operating cost is even with the output cost or total revenue.
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What is transportation cost
The cost it takes to transport a product.
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What is Total cost
The fixed and variable cost added together
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What is supply sked
Shows the relationship between price and quantity supplied for a specific good
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List three fixed costs
Taxes Gas Rent
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How does a manufacturer set total output to maximize profit?
Set the marginal revenue equal to marginal cost
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What is Excise tax
Tax on the production or sale of a good.
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