Production in the Short Run 7.2-3-Jenna Bryant Flashcards Preview

Econ 2106 Exam 2 > Production in the Short Run 7.2-3-Jenna Bryant > Flashcards

Flashcards in Production in the Short Run 7.2-3-Jenna Bryant Deck (12)
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1
Q

Where does the marginal product curve belong?

A

Below the total product curve

2
Q

What is the marginal product curve?

A

Reflects changes in the total product curve and is drawn using the same horizontal axis

3
Q

What happens to the marginal product curve when the total product curve is increasing?

A

The marginal product curve is also increasing

4
Q

What happens to MP when TP is increasing at a decreasing rate?

A

MP is positive but falling

5
Q

What happens to MP when TP reaches its maximum point?

A

MP=0, it crosses the x-axis

6
Q

After MP equals 0 what happens to the curve?

A

After this point MP becomes negative

7
Q

What happens to TP when MP becomes negative?

A

TP continues to fall

8
Q

On the TP curve when slope is increasing at an increasing rate, MP is?

A

MP is increasing

9
Q

On the TP curve when slope is increasing at a decreasing rate, MP is?

A

MP is decreasing

10
Q

On the TP curve when slope is decreasing at a decreasing rate, MP is?

A

MP is negative

11
Q

Where do you graph the MP curve?

A

Right under the TP curve

12
Q

What does the MP curve reflect?

A

It reflects the changes of the TP curve