Micro Prelim 2

0.0(0)
Studied by 0 people
call kaiCall Kai
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
GameKnowt Play
Card Sorting

1/14

encourage image

There's no tags or description

Looks like no tags are added yet.

Last updated 11:38 PM on 4/11/26
Name
Mastery
Learn
Test
Matching
Spaced
Call with Kai

No analytics yet

Send a link to your students to track their progress

15 Terms

1
New cards

What is a firms basic activity

turning inputs into outputs

2
New cards

Short Run Vs Long Run

The distinction between short run and long run in economics refers to the time frames in which inputs can be adjusted. In the short run, at least one input is fixed, while in the long run, all inputs can be varied.

3
New cards

What is MPL (Marginal Product of Labor)

Extra output for one more worker

4
New cards

Why Does MPL first raise

Specialization

5
New cards

Why Does MPL eventually fall?

Law of diminishing marginal returns

6
New cards

Define APL

Output per worker (Q/L)

7
New cards

Relationship between MPL and APL?

  • MPL > APL → APL rising

  • MPL < APL → APL falling

  • Meet at APL max

8
New cards

How to improve productivity?

Better technology, training, capital

9
New cards

Shape of MC

U-shaped

10
New cards

Shape of ATC and AVC

U-shaped

11
New cards

Shape of AFC

Downward

12
New cards

Where does MC intersect ATC?

At ATC minimum

13
New cards

Where does MC intersect AVC?

At AVC minimum

14
New cards

What is the gap between ATC and AVC?

AFC

15
New cards