Production in the Short Run 7.2-4-Jenna Bryant Flashcards Preview

Econ 2106 Exam 2 > Production in the Short Run 7.2-4-Jenna Bryant > Flashcards

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

If TP is increasing AP will also increase? (True or False)

False