<p>CP Economics (Chapter 5, #3) GPS SSEM12 Name ______Date ______Period______</p><p>Supply: Making Production Decisions</p><p>I. Why do producers look at when making supply decisions: A. to ______how efficiently there ______are being used in production B. to maximize ______C. ______profits II. Varying levels of input affects the levels of output: A. ______levels of input ______productivity up to a ______then eventually results in ______productivity and in negative marginal ______. III. Total Product A. ______of the ______a company makes in a given period of ______- with a given amount of ______. IV. Three Stages of Production (Marginal Return): A. ______*Each additional person ______production usually with ______. B. Diminishing Marginal Returns *Each additional person added ______production but at a ______. C. Negative Marginal Returns *Each additional person ______total ______V. Costs of Production: A. ______*______, interest on loans, insurance, ______and salaries B. ______1. Costs except wages C. ______1. Decreasing value D. ______1. Raw materials and ______E. ______1. The ______of the fixed and variable production ______VI. Marginal Costs A. The ______costs of producing and one ______unit of output B. It is the additional ______divided by the additional ______produced. VII. Earning the Highest Profit A. KEY CONCEPTS 1. ______- money made from sale of each ______unit ______i. same as price 2. Total revenue- ______from selling a ______ii. Total revenue= P (price) x Q (quantity) purchased at the same price. B. EXAMPLE: Production Costs and Revenues Schedule 1. To make most ______, owner decides number workers ______, units made 2. To ______, owner performs marginal ______a. comparison of costs, benefits of adding a worker, making another ______3. ______- level of production ______highest profit a. marginal cost and marginal revenue are ______</p><p>VIII. How changes in production costs affect producers’ supply decisions: 1. By ______the ______at which producers ______quantities of goods or services 2. By ______production ______</p><p>Closure #16</p><p>Robert Johnson: Supplying African-American Entertainment. What effect did BET’s success have on the supply of African-American programming?</p><p>1.</p>