Flashcards in Production in the Short Run 7.2-4-Jenna Bryant Deck (12)

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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