Flashcards in Production in the Short Run 7.2-2-Jenna Bryant Deck (15):

1

## What is the total product (TP) curve?

### Graphically explains a firm's total output in the short run

2

## What is marginal product (MP) of labor?

### The change in output generated from adding one more unit of the variable input, labor

3

## On the total product curve as labor changes then?

### Total output changes

4

## What does it mean that total product curve is a short-run curve?

### Tachnology and all inputs except labor are held constant

5

## What axis is labor on in the total product curve?

### The x-axis; horizontal axis

6

## What shape is the total product curve?

### The total product curve is S-shaped

7

## What part of the curve is convex?

### At the lower end where labor and output are low

8

## What is the phenonmenon that is a function of teamwork and specialization?

### As more workers are added at low production levels, they can specialize in tasks and more efficiently use the fixed inputs

9

## What is the curve doing when the output in increasing at an increasing rate?

### It is convex

10

## What happens to the curve when output is increasing at a decreasing rate?

### It is concave

11

## What happens when the total product curve reaches its maximum point?

### The total product curve hits its maximum point after which output decreases with each additional worker

12

## What is the formula for the marginal product of labor?

### The change of total ouput that results from increasing the amount of variable input, labor, by 1 unit

13

## What do teamwork and specialization lead to in the convex area of the TP curve?

### It leads to increased productivity

14

## After the maximum point on the TP curve what happens by adding addtional labor?

### Labor becomes inefficient and output falls

15