1. Model that shows the amount of a product that would be offered for sale at all possible prices by a producer.

2. Supply Curve

3. This principle explains that producers will offer more for sale at higher prices.

4. Law of Supply

5. A listing of the various quantities of a particular product supplied at all possible prices by all producers.

6. Market Supply Schedule

7. This graph represents the quantity offered at various prices by all firms for a given product.

8. Market supply curve

9. Lumber for construction, factory workers, and nails used for roofing

10. Inputs (variable costs)

11. Farmers use this government infusion of cash to keep their farms productive.

12. subsidies

13. Nanotechnology that improves the effectiveness of fertilizers normally has this effect.

14. Increase in the supply of agricultural products. OR Supply curve for agricultural products shifts to the right.

15. A pharmaceutical manufacturer who produces a popular cancer drug receives a tip that a new and better drug will hit the market next month causing the pharmaceutical manufacturer of the old drug to do this?

16. Increase production before new drug comes out. (Producer Expectations)

17. The amount that producers bring to market at any given price.

18. Quantity Supplied

19. The government imposes a tax on imported sugar causing the supply curve for bakery donuts to shift in this direction.

20. To the left

21. The portion of variable cost that is added when one additional unit is produced.

22. What is marginal cost?

23. Utilities, property taxes, rent, insurance, CEO’s salary

24. Fixed Costs

25. What category do raw materials and labor represent in a production cost schedule

26. Variable costs

27. What producers do when operating costs (variable costs) are greater than revenue

28. Shut down production facility

29. The additional output created by hiring another employee

30. Marginal Product of Labor

31. Elmo who manufactures toy cars and produces 600 cars per day hires one more employee. Total production of toy cars decline to 580. This situation is known as what?

32. Negative marginal returns

33. Profit maximization occurs at this point.

34. Where marginal cost equals marginal revenue, total revenue minus total cost is highest, price (marginal revenue) minus average cost per unit equals greatest per unit profit

35. The point at which total revenue minus total costs is greatest

36. Point of profit maximization

37. When the price of beanbags increases a producer will increase production to what level?

38. Where price(marginal revenue) is equal to marginal cost

39. EPA standards for CO2 emissions increase causing auto manufacturers to do this.

40. Reduce production of autos

41. When the price of tennis shoes increase by $15.00, producers increase production. What other factor may account for the increase in the market supply of tennis shoes.

42. New producers of tennis shoes

43. Helium is found in varying concentrations in the world’s natural-gas deposits. An increase in demand for helium has led to a shortage. What does this say about the supply of helium

44. It is inelastic

45. How does a producer figure the total cost of production?

46. Fixed Costs plus Variable Costs

47. A manufacturer of grocery bags made from recycled material has one sewing machine and one pair of scissors. With two employees he was producing 100 bags a day. When he hired a third employee, total production went up to 130 bags per day. What situation best describes this level of production?

48. Diminishing Marginal Returns

49. The price of oranges drops and stays low for several years causing farmers to finally grow avocados. This illustrates that oranges are elastic/inelastic, in the ‘long-run’, and elastic/inelastic in the ‘short- run’?

50. Elastic, Inelastic