the amount of goods available

tendency of suppliers to offer more of a good at higher price

the amount a supplier is willing and able to supply at a certain price

a chart that lists how much of a good a supplier will offer at different prices

a factor that can change

a chart that lists how much of a good all suppliers will offer at different prices

a graph of the quantity supplied of a good at different prices

a graph of the quantity supplied of a good by all suppliers at different prices

a measure of the way quantity supplied reacts to a change in price

the change in output from hiring one additional unit of labor

a level of production in which the marginal product of labor increases as the number of workers increases

a level of production in which the marginal product of labor decreases as the number of workers increases

a cost that does not change, no matter how much of a good is produced

a cost that rises or falls depending on how much is produced

fixed costs plus variable

the cost of producing one more unit of a good

the cost of operating a facility, such as a store or factory

the additional income from selling one more unit of a good; sometimes equal to price

a government payment that supports a business o market

a tax on the production or sale of a good

government intervention in a market that affects the production of a good

The law of supply develops from the choices of both current and new producers of a good. As the price of a good rises, existing firms will produce more in order to earn additional revenue. If the price of a good falls, some firms will produce less, and others might drop out of the market.

Profit drives decisions about pricing, what to make, and how much to make.

The supply curve shows the quantity of the good supplied and the price. It always rises from left to right.

No a change in price causes a shift along the curve.

If the price increased, quantity supplied would increase. If price dropped, the quantity supplied would decrease as well.

Yes, specialization increases output per worker, so the second worker adds more to output than the first. But you cannot add too many workers because at some point workers get in each other's way and disrupt the production process, so overall output decreases.

Workers could have a limited amount of capital.

If we know the total coast at several levels of output, we can determine marginal cost of production at each level.

Where marginal revenue is equal to marginal cost.

Input costs, technology, subsidy, taxes, government regulation, future expectations, number of suppliers

An excise tax increases production costs by adding an extra cost for each unit sold.

See image

Subsidies will decrease the costs of production and therefore increase quantity supplied.

Time. In the short run, a firm cannot easily change its output level, so supply is inelastic. In the long run, firms are more flexible, so supply is more elastic.