question
Supply curve
answer
Graph showing the various quanities supplied at each andbevery price
question
Subsidy
answer
Goverment payment to a indivisual/buisness/group to encourage economic activity
question
Marginal cost
answer
Extra cost incurred when a business produces one additional unit of a product
question
Law of variable prop
answer
State that in the short run ,output will change as one input is varied
question
Variable cost
answer
Cost that changes when the business rate of operation or output changes
question
Production function
answer
Concept that describes the relationship between changes in output/ different inputs
question
Quantity supplied
answer
Amount that producers bring to the market at any given time
question
Total revenue
answer
The number of units sold multiplied by the average price per unit
question
Fixed cost
answer
Cost that a business incurs even if the plant is idle and output is zero
question
Supply elactisity
answer
Measure of the way in which quantity supplied responds to a change in price
question
Total product
answer
Total output produced by a firm
question
E-commerce
answer
Electronic business or exhange conducted over the internet
question
Marginal product
answer
Extra output caused by the additionbof one more unit of variable input
question
Raw materials
answer
Unprocessed natural products used in profuction
question
What makes an item elastic on the supply curve ?
answer
Small increase in price leads to a larger increase in input
question
What factors can cause an increase in supply?
answer
1.cost of input
2.productivity levels
3.technology
4.taxes
2.productivity levels
3.technology
4.taxes
question
What does a production function show ?
answer
Total product of the total output that the company produces
question
What does the law of supply state?
answer
States suppliers will normally offer more for sale at higher prices then lower prices
question
What are examples of fixed cost?
answer
1.managment salaries
2.rent
3.taxes
2.rent
3.taxes
question
The total cost of production is determined by what?
answer
Sum of the fixed and variable cost together
question
What are examples of variable cost ?
answer
1.hourly labor
2.raw materials
3.electricity
2.raw materials
3.electricity
question
What is the direction of the supply curve ?
answer
Upwards slope
question
What are the stages of production?
answer
1. Stage 1(increasing returns)
2. Stage 2(diminishing returns )
3. Stage 3( negative returns)
2. Stage 2(diminishing returns )
3. Stage 3( negative returns)
question
What is marginal analysis?
answer
Comparing the extra benefits to the extra cost of a particular decision
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
