1. Describe what is meant by supply?
Supply is defined as the amount of a product that would be offered for sale at all possible prices that could prevail in themarket.
2. Distinguish between the individual supply curve and the market supply curve.
The individual supply curve almost all of them slop from the lower left-hand corner of the graph to theupper right hand corner.
3. Explain what is meant by a change in quantity supplied.
The quantity supplied is the amount that producers bring to the market at any given price. A change in quantitysupplied is the change in amount offered for sale in response to a change in price.
4. Identify the factors that cause a change in supply.
The factors that change in supply it can be: cost ofinputs, productivity, technology, taxes and subsidies, expectations, government regulations and number of sellers.
5. Describe the Law of Variable Proportions.
The Law of VariableProportions states that, in the short run, output will change as one input is varied while the others are held constant.
6. Explain the difference between total product and marginal product.Total product, or total output is what they produced by the firm, the total product rises, when more workers are added the total product rises, and it can be total product slows when more workers areadded output continues to rise, but it does so at a slower rate until it can grow no further. The marginal product is the extra output or change in total product caused by the addition of one move unitof variable input.
7. Identify the three stages of production.
Stage I is known as the stage of increasing returns.
Stage II illustrates the principle of diminishing returns the stage whereoutput increases at a diminishing rate as more units of a variable input are added.
Stage III marginal product becomes negative.
8. Describe the relationship between marginal cost...