Flashcards in Production in the Short Run 7.2-3-Jenna Bryant Deck (12):
Where does the marginal product curve belong?
Below the total product curve
What is the marginal product curve?
Reflects changes in the total product curve and is drawn using the same horizontal axis
What happens to the marginal product curve when the total product curve is increasing?
The marginal product curve is also increasing
What happens to MP when TP is increasing at a decreasing rate?
MP is positive but falling
What happens to MP when TP reaches its maximum point?
MP=0, it crosses the x-axis
After MP equals 0 what happens to the curve?
After this point MP becomes negative
What happens to TP when MP becomes negative?
TP continues to fall
On the TP curve when slope is increasing at an increasing rate, MP is?
MP is increasing
On the TP curve when slope is increasing at a decreasing rate, MP is?
MP is decreasing
On the TP curve when slope is decreasing at a decreasing rate, MP is?
MP is negative
Where do you graph the MP curve?
Right under the TP curve