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Chapter 5 Vocab

Across
extra output due to the addition of one more unit of input
government payment to encourage or protect a certain economic activity
broad category of fixed costs that includes rent, taxes, and executive salaries
principle that more will be offered for sale at higher prices than at lower prices
electronic business conducted over the Internet
decision making that compares the extra costs of doing something to the extra benefits gained
total amount earned by a firm from the sale of its products
a graph showing how a change in the amount of a single variable input changes total output
production period so short that only the variable inputs (usually labor) can be changed
a table showing how much a producer will supply at all possible prices
extra cost of producing one additional unit of production
stage where output increases at a decreasing rate as more units of variable input are added
a graph that shows the different amounts of a product supplied over a range of possible prices
production costs that change when production levels change
Down
the sum of fixed costs and variable costs
phases of production that consist of increasing, decreasing, and negative marginal returns
costs that remain the same regardless of level of production or services offered
a graph that shows the various amounts offered by all firms over a range of possible prices
extra revenue from the sale of one additional unit of output
production period long enough to change the amounts of all inputs