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Unformatted text preview: < MP = 0 (1) Efficient levels of production, preferably to the point where MP = 0 iii) MP = 0 < X 1 (1) Too much X 1 for the given amount of X 2 iv) Zone I is Zone III for X 2 Once you fix an input, you limit increases in output on the long run graph to movement on a line parallel to the variable input’s axis at a value equal to the quantity of the fixed input. The short run total product graph resides along and perpendicular to that line. Answers III...
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This note was uploaded on 04/10/2008 for the course ECON 3150 taught by Professor Tittle during the Spring '08 term at Georgia Tech.
- Spring '08