| A | B |
|---|
| increasing returns | MP > 0 & v |
| decreasing returns | MP > 0 & v |
| negative returns | MP < 0 |
| marginal product is increasing | produces a larger increase in total output than the prededing one |
| marginal product is decreasing | produces a smaller increase in total output than the prededing one |
| marginal output is negative | produces a decrease in total output |
| HRS | labor hours worked |
| TO | total output |
| MP | marginal product |
| principle of productivity | managers acheive maximum productivity when they are able to evoke from a fixed amount of resources the greatest possible output of a given good or service |
| independ variable | variable input--horizontal axis |
| dependent variable | output--vertical axis |
| marginal cost | a relationship between the production fundtion and the cost of production |
| limit IV | capacity |
| limit III | maximum returns |
| variable | input * |
