Production in the Short Run 7.2-3-Jenna Bryant Flashcards Preview

Econ 2106 Exam 2 > Production in the Short Run 7.2-3-Jenna Bryant > Flashcards

Flashcards in Production in the Short Run 7.2-3-Jenna Bryant Deck (12):
1

Where does the marginal product curve belong?

Below the total product curve

2

What is the marginal product curve?

Reflects changes in the total product curve and is drawn using the same horizontal axis

3

What happens to the marginal product curve when the total product curve is increasing?

The marginal product curve is also increasing

4

What happens to MP when TP is increasing at a decreasing rate?

MP is positive but falling

5

What happens to MP when TP reaches its maximum point?

MP=0, it crosses the x-axis

6

After MP equals 0 what happens to the curve?

After this point MP becomes negative

7

What happens to TP when MP becomes negative?

TP continues to fall

8

On the TP curve when slope is increasing at an increasing rate, MP is?

MP is increasing

9

On the TP curve when slope is increasing at a decreasing rate, MP is?

MP is decreasing

10

On the TP curve when slope is decreasing at a decreasing rate, MP is?

MP is negative

11

Where do you graph the MP curve?

Right under the TP curve

12

What does the MP curve reflect?

It reflects the changes of the TP curve