Chapter 5: Supply

True/False:  Elasticity of supply tells how firms will respond to changes in prices of goods.  

True/False:  New technology can lower production costs in many industries.

The cost of producing one more unit of good or service

True/False:A firm with too many workers & diminishing marginal returns,may layoff workers.

Level of production where marginal production of labor increases as the # of workers increases

The amount of goods & services produced and available to sell to consumers.

True/False:  If prices rise, producers want to produce more to maximize their losses.

True/False: When businesses don't make profits they may expand & open more stores.

True/False: Firms entering a market increase supply & competition bringing lower prices.

True/False: Diminished returns, rising costs & loss of revenue might signal a firms shutdown  

True/False:Variable costs rise/fall no matter how many goods or services are produced.  .  

True/False:  A government subsidy may protect young growing firms from foreign competition 

True/False: When businesses shut down; it's bad for consumers because low supply = high prices.

The graphic representation of supply shows what firms are willing to produce @ different prices

True/False: The incentive to make a profit discourages entrepreneurs to start businesses.

The additional income from selling on more unit of a good or service; sometimes equal to price 

True/False: Expectations of low demand for goods/services may lure firms to enter the market.

Fixed costs plus variable costs equal this:

Raw materials, machines, labor & utilities are all costs that firms must pay & are known as:

True/False: In the long term, supply is more elastic to changes in price than in the short run.

True/False: One of the reasons entrepreneurs start businesses is to make lots of money/profit. 

True/False:Fixed costs are costs that change when production increases.  

True/False: Firms entering a market decrease supply & competition bringing lower prices.

True/False:  Government tariffs may protect young, growing firms from foreign competition 

True/False: In the long term, supply is inelastic to changes in price than in the short run.

True/False: More businesses = more competition = more supply = lower prices for consumers.

The higher the price, the more that is produced and the lower the price, less is produced.

The change in output from hiring an additional worker 

A government payment to firms that supports a business or market

True/False-Supply for goods like oranges is inelastic because farmers can't quickly grow more

True/False: Supply schedules show the relationship between price & quantity supplied for goods.

True/False:  Regulations raise production costs, lower supply and bring higher prices.

True/False:  New technology can lower production costs & increase supply which raises prices.

True/False-Supply is elastic over time because firms can adjust & produce more goods/services.

True/False:  Quantity supplied is how much a supplier is willing & able to supply at prices

True/False:  Taxes raise production costs, lower supply and bring higher prices.

True/False: When businesses don't make profits they may leave the market & shut down.

True/False: Expectations of high demand for goods/services may lure firms to enter the market.