Short-Run Costs 7.3-7 Hunter Parrott Flashcards Preview

Econ 2106 Exam 2 > Short-Run Costs 7.3-7 Hunter Parrott > Flashcards

Flashcards in Short-Run Costs 7.3-7 Hunter Parrott Deck (12):
1

What is MC?

Marginal Cost, the cost of producing an extra unit of output.

2

When MC is below ___, MC pulls the average down.

AVC

3

When MC is ______ AVC, MC is pushing the average up;

above

4

MC and AVC intersect at the ______ AVC.

lowest

5

If you flip the AVC and MC curves over, they become ___ and ___ curves.

APL, MP

6

Does AVC and MC curves mirror APL and MP curves?

For Sure

7

MP(L)

Marginal Product

8

What is MP(L)?

Extra output produced with and additional worker hired.

9

AP(L)

average product

10

What is AP(L)?

Output produced per worker

11

when the next unit costs less than the average, it must be pulling the average ____.

down

12

What happens when MC is above AVC?

MC pushes average up.