Chapter 5 "Supply"

To calculate __________, one must divide the change in total cost by the change in total product.

• total revenue

• marginal revenue

• marginal cost

The theory of __________ deals with the relationship between the factors of production and the output of goods and services.

• production

• specialization

• demand

A supply is _______ if a change in price leads to larger change in quantity supplied.

• unit elastic

• inelastic

• elastic

If labor productivity increases, causing lower production costs, what happens to supply?�

• supply remains constant

• supply increases

• supply decreases

_______ are the prices of resources needed to produce a good or service.

• Input costs

• Output costs

• Labor productivity

If productions costs rise, what happens to the supply?

• supply increases

• supply decreases

• supply remains constant

Having each worker focus on a particular facet of production it is called _______.

• specialization

• increased efficiency

• marginal productivity

________ occur when the total output grows at decreasing rate.

• Fixed Returns

• Diminishing Returns

• Increasing Returns

A _________ is a rise or fall in amount offered for sale because of change in price.

• change in quantity supplied

• market supply schedule

• marginal revenue

On curve S2, at what price is the quantity supplied 400?

• $3.00

• $2.50

• $1.50