Column A Column B

1. supply a. The additional cost of producing an extra unit of output.

2. total costs b. Everyone who offers an economic product for sale.

3. the Law of Supply c. Costs that increase as the number of units

produced increases.

4. variable costs d. A table showing the quantities of a product that

would be offered for sale at various prices at a given time.

5. supply schedule e. Number of items offered for sale at each of

several prices.

6. marginal cost f. Sellers will offer more of a product at a higher

price and less at a lower price.

7. supplier g. Costs that remain the same regardless of

the amount of business done by the firm.

8. fixed costs h. The sum of the fixed and variable costs.

IV. Answer the following questions:

1. What do business people think of demand (supply)?

2. What does the term “supply” mean?

3. Whom do we call a suppler?

4. What does the Law of Supply state?

5. Why is it important for business to analyze the costs?

6. What categories is the cost divided into?

7. What is fixed cost?

8. What do fixed costs include?

9. What is variable cost?

10. Total cost is the sum of the fixed and variable costs, isn’t?

11. What do you know about marginal cost?

SELF-STUDY WORK

TEXT A

Translate the text with the dictionary in written form: