Flashcards in Short-Run Costs 7.3-4- MarieSmith Deck (14):

1

## Marginal cost curve is a mirror image of what?

### The marginal product curve.

2

## When graphing the marginal cost curve on which axis do you label marginal cost?

### Marginal cost is on the vertical axis.

3

## What goes on the horizontal axis of a graph of the marginal cost curve?

### Total product (output) is represented on the horizontal axis.

4

## What is marginal cost?

### It is the cost of producing an extra unit of output given the # of of units you are already producing.

5

## How are cost and productivity related?

### They are reciprocally related.

6

## Explain the reciprocal relationship between cost and productivity.

### When productivity is increasing, marginal cost is decreasing. When marginal product is falling then the marginal cost is rising.

7

## Why does marginal product fall after a certain # of workers are hired?

### The workplace becomes congested and workers are unable to produce as much

8

## Marginal cost is the slope of what curve at any point?

### MC is the slope of the variable cost curve.

9

## What does the variable cost curve show?

### The increasing variable costs associated with each output level.

10

## What is the most important point on the variable cost curve?

### The inflection point.

11

## What is the inflection point on the V C curve?

### It is where the slope of the V C curve is smallest.

12

## What happens at the inflection point of the V C curve?

### The slope changes from concave to convex.

13

## The inflection point of the V C curve may be used to find what?

### The inflection point becomes the lowest point on the marginal cost curve.

14