01
Front
What does a production function describe?
Back
A production function describes the maximum output a firm can produce from given quantities of inputs using its available technology.
Free Online Flashcard Deck
2 Marginal Product and Productivity Free Online FlashCards
Study 2 Marginal Product and Productivity with 12 free online flashcards. Review key terms, definitions, and concepts with this interactive flashcard deck.
12 cards
02
Front
What distinguishes production in the short run?
Back
In the short run, at least one input is fixed while another, such as labor, can vary.
03
Front
What is total product?
Back
Total product is the total quantity of output produced.
04
Front
How is average product of labor calculated?
Back
Average product of labor is output per unit of labor: APL=LQ.
05
Front
How is marginal product of labor calculated?
Back
Marginal product of labor is the change in output per change in labor: MPL=ΔLΔQ.
06
Front
What is the third worker’s marginal product when output rises from 20 to 30?
Back
The third worker raises output from 20 to 30 units, so their marginal product is 10 units.
07
Front
What does the slope of a total-product curve represent?
Back
Marginal product is the slope of the total-product curve; a steeper curve means a larger marginal product.
08
Front
What do positive, zero, and negative marginal product indicate?
Back
Positive marginal product increases total output; zero marginal product means output is at its peak; negative marginal product means output falls.
09
Front
What happens to average product when marginal product is above it?
Back
When marginal product is above the current average product, it pulls the average upward.
10
Front
What is diminishing marginal product?
Back
Diminishing marginal product occurs when each additional unit of a variable input adds less output than the previous unit.
11
Front
Why can marginal product diminish when labor increases?
Back
With equipment or workspace fixed, additional workers may have to share or crowd the same resources, reducing the extra output each adds.
12
Front
Can total output rise while marginal product is diminishing?
Back
Yes. During diminishing marginal product, each added worker contributes less than the previous one, but total output can still rise as long as marginal product remains positive.
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