Chapter+5+HW


 * 5.1 Take Notes...Answer questions #1-6 on pg 106 **
 * NOTES **
 * Supply is the amount of goods available.
 * Law of supply, the higher the price, the larger the quantity produced.
 * Economists use the term quantity supplied to describe how much of a good is offered for sale at a specific price.
 * A supply schedule shows the relationship between price and quantity supplies for a specific good.
 * Variables are factors that can change.
 * A market supply schedule shows the relationship between prices and the total quantity supplied by all firms in a particular market.
 * A supply curve is very similar to a demand curve, except that the horizontal axis now measures the quantity of the good supplied.
 * Elasticity of supply is based on the same concept.


 * 1. The law of supply in my own words is when the supplier produces more as the price for the goods being produced goes up. **
 *  2. The difference between supply and quantity supplied is 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, will change greatly with a great price change too. **
 *  4. If the price of oil around the world raises, the production of oil from texas will begin to increase. **
 *  5. a) inelastic - **
 *  b) elastic - **
 *  c) elastic - **
 *  6. They might chose to work less but work harder to still make profit and have time for other things. **

1 )Marginal product of labor changes the output as more workers are hired. 2.)The impact of diminishing marginal returns labor are that the company will produce less and less for each hired person. 3.)A fixed cost good of a bakery is the rent, and the variable cost is the water bill 4.)A firm calculates the marginal cost by keeping track of the fixed and variable costs. 5.)The one that has twice the amount of workers because more people on the job makes it harder. 6.a.) Repairs to a leaking roof: fixed b.)Cotton: variable c.)Food for the mill's cafeteria: variable d.)Night security guard: fixed e.)Electricity: variable
 * 5.2 Take Notes...Answer questions #1-6 on pg 116 **
 * Marginal product of labor, or the change in the output from hiring one more worker.
 * Increasing marginal returns benefits from specialization for the first couple weeks.
 * Diminishing marginal returns adding more workers increases total output, but at a decreasing rate.
 * A fixed cost is a cost that does not change, no matter how much of a good is produced.
 * Variable cost are costs that rise or fall depending on the quantity produced.
 * Fixed costs are variable costs are added together to find total cost.


 * Chapter 5.3 Questions #1-5**


 * Answer Questions #1-7, 9-14 on pg. 122 **