Pg 101-106 Notes
-supply - the amount of goods available
-law of supply - tendency of suppliers to offer more of a good at a higher price
-quantity supplied - the amount of a supplier is willing and able to supply at a certain price
-if a firm is ready earning a profit by selling a good, then an increase in the price -ceteris paribus- will increase the firms profits
-supply schedule - a chart that lists how much of a good a supplier will offer at different prices
-variables - a factor that can change
-market supply schedule - a chart that lists how much of a good all suppliers will offer at different prices
-economists use the word supply to refer to the relationship between price and quantity
-supply curve - a graph of the quantity supplied of a good at different prices
-market supply curve - a graph of the quantity supplied of a good by all suppliers at different prices
-elasticity of supply - a measure of the way quantity supplied reacts to a change in price
Ch 5.1 #1-6
1. A supplier produces more as the price for the good they are producing goes up.
2. Supply is an overall amount of the available goods while quantity supplied is the amount that a supplier is willing to produce at a given price.
3. The quantity of a good with elasticity of supply would change greatly with a great change of price.
4. If the price of oil around the world raises, the production of oil from texas would increase.
5. a) inelastic - the number of hotels can't go up as rapidly as the price could
b) elastic - taxi drivers could work more often
c) elastic - you can easily make more of them
6. They chose to make the same amount of money for less work. The idea is : still making this profit, but now I have time to myself or my family.
Pg 108-114 Notes
-one of the basic questions any business owner has to answer is how many workers to hire
-marginal product of labor - the change in output from hiring one additional unit of labor
-the marginal product of labor increases for the workers because there are tasks that need to be done by each worker
-increasing marginal returns - a level of production in which the marginal product of labor increases as the number of workers increases
-diminishing marginal returns - a level of production which the marginal product of labor decreases as the number of workers increases
-paying workers and purchasing capital are all costs of producing goods
-fixed cost - a cost that doesn't change, no matter how much of a good is produced
-variable cost - a cost that rises or falls depending on how much is produced
-total cost - fixed costs plus variable costs
-marginal cost - the cost of producing one more unit of a good
-behind all of the decisions about how many workers to hire is the firm's basic goal: maximize profits
-marginal revenue - the additional income from selling on more unit of a good; sometimes equal to price
-Consider the problems faced by a factory that is losing money
-operating cost - the cost of operating a facility, such as a store or factory
-if a firm were to shut down a factory, it would still have to cover all of its fixed costs
Ch. 5.2 1-6
1. The marginal product of labor increases as labor increases and decreases as labor decreases.
2. The impact of diminishing marginal returns on labor is that you are paying more money for labor and not making that money back based on the output of your workers.
3. A fixed cost of a bakery is flooring, a variable cost is flour.
4. A firm calculates marginal cost by the cost of the one more unit purchased.
5. The smaller factory will experience diminishing returns first because they cannot contain the same amount of workers and allow for the same working environment and produce the same ratio of worker to good.
6. a)fixed:you don't have to pay more for a leaking roof based on your production
b)variable:you buy more so you can produce more
c)variable:you will have more workers who need more food to produce more
d)fixed:the guard will still be there and will continue to be there no matter how much you produce in the da
e)variable:the use of electricity goes up as production does
Ch. 5.3 1-5
1. Subsidies allow businesses to produce more because the govt. is helping them produce.
2. The govt. raises excise taxes to raise money.
3. Regulation affects a producer's output decisions because it determines how much they can produce, how much they can charge for it, and how well they produce it.
4. If the govt. wanted mining to produce less than they did last year, they would impose regulations.
5. a) decrease
b) decrease
c) increase
Pg. 122 1-7, 9-14
1. fixed cost
2. marginal revenue
3. excise tax
4. elasticity of supply
5. subsidy
6. regulation
7. marginal cost
9. the marginal product of labor changes by going up the amount of work the additional people who are hired do.
10. fixed cost and variable costs combine to form total cost.
11. 3 factors that affect supply are subsidies(money given to companies by govt. to support them), excise tax(a tax on the production or sale of a good), and regulations(govt. intervention in a market that affects the production of a good).
12. When a firms workers are limited to the amount of capital and machinery, they will experience diminishing marginal returns.
13. The global economy affects the supply of a good in the united states by limiting(or expanding) the amount of said good being produced through exporting and importing materials for the making of it.
14. The 1$ tax raise on fish, would raise the price of the fish. The individual supply curve for fish would move to the up.
-supply - the amount of goods available
-law of supply - tendency of suppliers to offer more of a good at a higher price
-quantity supplied - the amount of a supplier is willing and able to supply at a certain price
-if a firm is ready earning a profit by selling a good, then an increase in the price -ceteris paribus- will increase the firms profits
-supply schedule - a chart that lists how much of a good a supplier will offer at different prices
-variables - a factor that can change
-market supply schedule - a chart that lists how much of a good all suppliers will offer at different prices
-economists use the word supply to refer to the relationship between price and quantity
-supply curve - a graph of the quantity supplied of a good at different prices
-market supply curve - a graph of the quantity supplied of a good by all suppliers at different prices
-elasticity of supply - a measure of the way quantity supplied reacts to a change in price
Ch 5.1 #1-6
1. A supplier produces more as the price for the good they are producing goes up.
2. Supply is an overall amount of the available goods while quantity supplied is the amount that a supplier is willing to produce at a given price.
3. The quantity of a good with elasticity of supply would change greatly with a great change of price.
4. If the price of oil around the world raises, the production of oil from texas would increase.
5. a) inelastic - the number of hotels can't go up as rapidly as the price could
b) elastic - taxi drivers could work more often
c) elastic - you can easily make more of them
6. They chose to make the same amount of money for less work. The idea is : still making this profit, but now I have time to myself or my family.
Pg 108-114 Notes
-one of the basic questions any business owner has to answer is how many workers to hire
-marginal product of labor - the change in output from hiring one additional unit of labor
-the marginal product of labor increases for the workers because there are tasks that need to be done by each worker
-increasing marginal returns - a level of production in which the marginal product of labor increases as the number of workers increases
-diminishing marginal returns - a level of production which the marginal product of labor decreases as the number of workers increases
-paying workers and purchasing capital are all costs of producing goods
-fixed cost - a cost that doesn't change, no matter how much of a good is produced
-variable cost - a cost that rises or falls depending on how much is produced
-total cost - fixed costs plus variable costs
-marginal cost - the cost of producing one more unit of a good
-behind all of the decisions about how many workers to hire is the firm's basic goal: maximize profits
-marginal revenue - the additional income from selling on more unit of a good; sometimes equal to price
-Consider the problems faced by a factory that is losing money
-operating cost - the cost of operating a facility, such as a store or factory
-if a firm were to shut down a factory, it would still have to cover all of its fixed costs
Ch. 5.2 1-6
1. The marginal product of labor increases as labor increases and decreases as labor decreases.
2. The impact of diminishing marginal returns on labor is that you are paying more money for labor and not making that money back based on the output of your workers.
3. A fixed cost of a bakery is flooring, a variable cost is flour.
4. A firm calculates marginal cost by the cost of the one more unit purchased.
5. The smaller factory will experience diminishing returns first because they cannot contain the same amount of workers and allow for the same working environment and produce the same ratio of worker to good.
6. a)fixed:you don't have to pay more for a leaking roof based on your production
b)variable:you buy more so you can produce more
c)variable:you will have more workers who need more food to produce more
d)fixed:the guard will still be there and will continue to be there no matter how much you produce in the da
e)variable:the use of electricity goes up as production does
Ch. 5.3 1-5
1. Subsidies allow businesses to produce more because the govt. is helping them produce.
2. The govt. raises excise taxes to raise money.
3. Regulation affects a producer's output decisions because it determines how much they can produce, how much they can charge for it, and how well they produce it.
4. If the govt. wanted mining to produce less than they did last year, they would impose regulations.
5. a) decrease
b) decrease
c) increase
Pg. 122 1-7, 9-14
1. fixed cost
2. marginal revenue
3. excise tax
4. elasticity of supply
5. subsidy
6. regulation
7. marginal cost
9. the marginal product of labor changes by going up the amount of work the additional people who are hired do.
10. fixed cost and variable costs combine to form total cost.
11. 3 factors that affect supply are subsidies(money given to companies by govt. to support them), excise tax(a tax on the production or sale of a good), and regulations(govt. intervention in a market that affects the production of a good).
12. When a firms workers are limited to the amount of capital and machinery, they will experience diminishing marginal returns.
13. The global economy affects the supply of a good in the united states by limiting(or expanding) the amount of said good being produced through exporting and importing materials for the making of it.
14. The 1$ tax raise on fish, would raise the price of the fish. The individual supply curve for fish would move to the up.