Chapter 5 - Supply

amount of a product offered for sale at all possible prices in a market

• supply
• breaking-even point
• diminishing marginal return
• fixed costs
• long run

shows quantities offered at various prices by all firms that sell a product in a given market

• market supply
• breaking-even point
• diminishing marginal return
• fixed costs
• long run

production period so brief that only variable inputs (labor) can be changed

• short run
• breaking-even point
• diminishing marginal return
• fixed costs
• long run

production period length enough to change amount of all inputs used in production.

• long run
• breaking-even point
• diminishing marginal return
• fixed costs
• market supply

stage of production at which output increases at a decreasing rate

• diminishing marginal return
• breaking-even point
• fixed costs
• long run
• market supply

production expenses that do not change when output changes

• fixed costs
• breaking-even point
• diminishing marginal return
• long run
• market supply

production expenses that change as output changes, such as labor or raw materials

• variable cost
• breaking-even point
• diminishing marginal return
• fixed costs
• long run

all expenses associated with production

• total cost
• breaking-even point
• diminishing marginal return
• fixed costs
• long run

level of production at which marginal cost is equal to marginal revenue

• profit-maximization point
• breaking-even point
• diminishing marginal return
• fixed costs
• long run

production level at which total cost equals total revenue

• breaking-even point
• diminishing marginal return
• fixed costs
• long run
• market supply