Section+5+review

1.)An expense that costs the same whether or not a firm is producing a good or service Fixed Cost 2.)The income that the supplier receives from selling one more unit Marginal Revenue 3.)A tax on the sale or manufacture of a good Excise Tax 4.)A measure of how suppliers will respond to a change in price Elasticity of Supply 5.)A government payment to support a business or market subsidy 6.)The tendency of suppliers to offer more of a good at a higher price Law of Supply 7.)The additional cost of producing one more unit of output Marginal Cost 9.)How does the marginal product of labor change as more people are hired. As more people are hired the marginal product of labor is lowered. 10.)What categories of costs combine to create a firm's total cost? Fixed costs and variable costs combine to make a firm's total. 11.)Name and describe three factors that can cause a change in supply Subsidies: a government payment that supports a business or market Taxes: They can place a tax on the production or sale of a good Regulations: Government intervention in a market that affects the production of a good 12.)What circumstances cause a firm to experience diminishing marginal returns? Hiring more people 13.)How can the global economy affect the supply of a good in the United States? If the economy is good some stuff can be bought for less. 14.)Assume that a $1 per pound tax has been placed on fish. What effect will this have on the supply curve for fish? Regulations that reduce supply shift the supply curve to the left.