Ch 5 Supply

Price goes on ________

• the vertical axis
• the horizontal axis
• at the origin
• the z axis

Which of the following is the best example of the law of supply?

• a milling company builds a new factory to process flour for export
• a catering company buys a new dishwasher to make their work easier
• a food producer increases the number of acres of wheat he grows to supply a milling company 
• a sandwich shop increases the number of sandwiches they supply every day when the price is increased

What does this curve represent?

• demand
• supply
• equilibrium
• shortage

If bad weather destroys much of the wheat crop, then

• the price effect will cause growers to sell less wheat at lower prices.
• growers will offer less wheat at each and every price.
• no wheat products will be produced that year.
• none of the above.

A government subsidy to the producers of a product: 

• increases product demand.
• reduces product supply.
• reduces product demand.
• increases product supply.

Which of these is a fixed cost for a store?

• short-term workers
• rent
• advertising
• inventory

The total cost of production is determined by?

• adding fixed and variable costs 
• adding marginal product changes as variable inputs are added.
• the way inputs change in response to business decisions.
• the way output changes independent of input. 

Total cost is the sum of the 

• fixed costs overhead. 
• all variable costs.
• fixed and variable costs.
• fixed and marginal costs.

The cost of creating one more of a particular product is called the

• Overhead
• Fixed cost
• Marginal cost
• Variable cost

 Total Revenue - Total Cost = _____

• Profit
• Revenue
• Marginal Revenue
• Variable Revenue