Measuring Production
This is the total quantity of output produced by a certain amount of inputs.
What is Total Product?
This is the average per-unit fixed cost of production for a given quantity of output.
What is Average Fixed Cost?
Which input(s) is/are present in long run production?
What is variable input?
Formula of Average Product (AP)
What is Total Product/Labor (TP/L)?
When MP is above AP, AP is ______.
What is rising?
The additional output produced by one more unit of variable input is ________ _______.
What is Marginal Product?
The two inputs in Short Run production are fixed input and _____ _____.
What is variable input?
This is the term for when the long run Average Total Cost decreases as output increases.
What is Economies of Scale?
Formula of Average Variable Cost (AVC)?
What is Variable Cost/Quantity (VC/Q)?
When MP is positive but decreasing, TP is increasing at a __________ rate.
What is decreasing?
This is the average quantity of output produced by one unite of a variable input.
What is Average Product?
This is the cost that must be paid at all levels of output.
What is Fixed Cost?
The difference between increasing and decreasing returns to scale is.
What is the rate they increase?
Formula of Average Fixed Cost (AFC).
What is Fixed Cost/Quantity (FC/Q)?
When MP is negative, TP is __________.
What is decreasing?
When Marginal Product is above Average Product, Average Product is ______.
What is rising?
The Average Fixed Cost + the Average Variable Cost equals.
The letter that most resembles a long run average total graph.
What is u?
Formula of Marginal Product (MP).
What is Change in Total Product/Change in Labor?
The intersection of MP and AP is the _______ of AP.
What is maximum?
This product represents the slope of Total Product on a graph.
What is Marginal Product?
This is why Marginal Cost eventually rises after decreasing initially.
What is diminishing returns?
This helps determine the number of firms in a market.
What is minimum efficient scale?
Formula of Marginal Cost (MC).
What is Change in Total Cost/Change in Quantity?
When MP = 0, TP is at ___.
What is max?