Production in the Short Run 7.2-4-Jenna Bryant

Question 1

What is average product?

Answer 1

The total product divided by the total quantity of labor. The average amount of output each worker can produce

Question 2

What is another name for average product?

Answer 2

Average product of labor (APL)

Question 3

What is the formula for average product?

Answer 3

Divide total product by the number of employees

Question 4

What initially happens to the AP curve?

Answer 4

AP initially rises to a maximum and then falls as additional workers are added

Question 5

When AP is rising it is below or above MP?

Answer 5

It is below MP

Question 6

When AP is falling it is below or above MP?

Answer 6

It is above MP

Question 7

When does the MP and AP curve intersect?

Answer 7

At the maximum AP

Question 8

What shape is the AP curve?

Answer 8

The AP curve is U shaped

Question 9

The MP and AP curve always intersect?

Answer 9

At the maximum of the AP curve

Question 10

There are 2 employees that can produce a total of 12 TVs, what is the average product?

Answer 10

12/2=6 The average product is 6

Question 11

There are 4 employees that can produce a total of 40 TVs, what is the average product?

Answer 11

40/4=10 The average product is 10

Question 12

If TP is increasing AP will also increase? (True or False)

Answer 12

False