Flashcards in Production in the Short Run 7.2-4-Jenna Bryant Deck (12):
1
What is average product?
The total product divided by the total quantity of labor. The average amount of output each worker can produce
2
What is another name for average product?
Average product of labor (APL)
3
What is the formula for average product?
Divide total product by the number of employees
4
What initially happens to the AP curve?
AP initially rises to a maximum and then falls as additional workers are added
5
When AP is rising it is below or above MP?
It is below MP
6
When AP is falling it is below or above MP?
It is above MP
7
When does the MP and AP curve intersect?
At the maximum AP
8
What shape is the AP curve?
The AP curve is U shaped
9
The MP and AP curve always intersect?
At the maximum of the AP curve
10
There are 2 employees that can produce a total of 12 TVs, what is the average product?
12/2=6 The average product is 6
11
There are 4 employees that can produce a total of 40 TVs, what is the average product?
40/4=10 The average product is 10
12