MP Takeaways
MP is increasing.
What is total product increasing at an increasing rate?
Profit formula.
What is total revenue - (explicit + implicit costs)?
Total Product
What is the slope that reaches its maximum when MP is at O?
Variable Inputs.
What are inputs that can be changed in the short run to change production?
Decreasing RTS.
What is output is increasing at a slower rate than all inputs?
MP is zero.
What is total product at a maximum?
Total revenue.
What is the price of items * quantity of items sold?
MC slope.
What is the slope that starts the lowest yet ends the highest?
Production Function.
What is the way a firm combines inputs to produce an output?
Increasing RTS.
What is output is increasing at a faster rate than all inputs?
MP above AP.
What is AP rising?
Zero economic profit means...
What is the same as normal product?
AFC Slope.
What is the Slope that starts between AVC and ATC and ends at the lowest?
Fixed Inputs.
What are inputs that cannot be changed in the short run to change production?
Constant RTS.
What is output is increasing at the same rate as all inputs?
MP is negative.
What is TP decreasing?
Normal Profit does what...
What is rewards the entrepreneur?
AP slope.
What is the slope that begins to go down when total product goes down?
Plant Capacity.
What is a firm's maximum potential level of production?
Diseconomics of scale.
What is long-run ATC increases as output increases?
MP is positive but decreasing.
What is TP is increasing at an increasing rate?
Economic Profit.
What is TR - (explicit costs + implicit costs)?
MP slope.
What is the slope that reaches its maximum sooner than the rest yet falls to the negatives?
Short Run.
What is the period during which there are fixed inputs and is too short for a firm to alter its plant capacity?
Economics of Scale.
What is long-run ATC decreases as output increases?