Law of Diminishing Marginal Utility – Flashcards
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to get smaller
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diminishing
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from one increment to the next increment, a measure
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marginal
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usefulness
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utility
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as the price decreases, the quantity demand increases, to a certain point. After that, each addition item is no longer useful
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law of diminishing marginal utility
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as the price increases the quantity produces- are willing to supply increases
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law of supply
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our profit = price - costs of production
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input costs
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how much workers are able to produce in a certain amount of time. If workers are better trained, they will supply more
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labor productivity
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tools to make production faster and easier
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technology
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if taxes increase and price stays the same, profits decrease
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government action
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change in supply based on predictions by the producer
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producers expectations
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in the whole economy
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number of producers
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as each addition unit is added to fixed supply of other resources, total product will increase to a certain point. Then it will decrease and then become negative
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law of diminishing marginal returns
