Chapter 5 Supply. Chapter 5 Section 1: What is Supply Main Idea: For almost any good or service, the...
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Transcript of Chapter 5 Supply. Chapter 5 Section 1: What is Supply Main Idea: For almost any good or service, the...
Chapter 5 Supply
Chapter 5 Section 1: What is Supply
Main Idea: For almost any good or service, the higher the price, the larger the quantity that will be offered for sale.
Vocabulary
SupplyLaw of SupplySupply scheduleSupply curveMarket supply curveQuantity suppliedChange in quantity suppliedChange in supplySubsidySupply elasticity
Notes
What is the difference between a supply schedule and a supply curve?
How are market supply curves obtained?What factors cause change in supply?
◦A◦B◦C◦D◦E◦F◦G
Assignment to turn in
Study the graphs in figures 5.1, 5.2, 5.3, 5.4
Answer the questions (in complete sentences) that appear in yellow at the bottom of each figure box.
Ch 5 section 2: The Theory of Production
Main Idea: A change in the variable input called labor results in a change in production
vocabulary
Theory of productionShort runLong runLaw of variable proportions production function raw materialstotal productmarginal product stages of production diminishing returns
Notes
What relationship is the theory of production based on?
How does marginal product change in each of the 3 stages of production
What will happen if companies continue to hire workers?
Activity to turn in
Figure 5.5
Ch 5 section 3: Cost, Revenue, and Profit
MaximizationMain Idea: Profit is maximized when the marginal costs of
production equal the marginal revenue from sales.
vocabulary
Fixed costOverheadVariable costTotal costMarginal costE-commerceTotal revenueMarginal revenueMarginal analysisBreak even pointProfit-maximizing quantity of output
Notes
What are the 4 measures of cost?What are the 2 measures of revenue?How is marginal analysis used to
determine break-even and profit maximizing decisions?