midterm 2 Flashcards
1
Q
if slope is positive
A
MPL or MPK Is increasing
2
Q
find slope by
A
setting to 0
3
Q
total product falls when
A
MPL is neg
4
Q
graph of prod func is linear and only labor
A
MPL is zero
5
Q
if MPL is above x-axis
A
output/total product is increasing
6
Q
as we move downward on isoquant
A
MRTS decreases
7
Q
MRTS is
A
negative of the slope of isoquant
8
Q
as labor increases and cap decreases
A
MPL falls while MPK rises
9
Q
isoquants usually drawn with convex shape because
A
inputs are not perfectly suitable
10
Q
if isoquants is steep
A
MRTS is high
11
Q
leontieff function
A
proportion type
12
Q
when L is useless
A
isoquant is horizontal
13
Q
perfect substitutes
A
downward sloping straight
14
Q
leontief graph is
A
L-shaped
15
Q
MC crosses ATC at
A
lowest point
