Asked by
Arely Herrera
on Oct 25, 2024
Verified
From Equation (7.1) in the book, the short-run marginal cost of production is MC = w/MPL. Based on this equation, which of the following statements is NOT true?
A) If the marginal product of labor is constant, then MC is constant.
B) If the marginal product of labor is a concave curve, then the MC curve is also concave.
C) If the marginal product of labor is a concave curve, then the MC curve is U-shaped.
D) MC increases as the marginal product of labor declines.
Marginal Product
The additional output produced by using one more unit of a given input, holding all other inputs constant.
Marginal Cost Curve
A graphical representation that shows how the cost of producing one additional unit of a good changes as the production volume varies.
Short-Run Marginal Cost
The change in total cost associated with producing one additional unit of output, considering some inputs are fixed.
- Examine the impact of the law of diminishing returns on costs and production activities in the short-term perspective.
Verified Answer
KA
Learning Objectives
- Examine the impact of the law of diminishing returns on costs and production activities in the short-term perspective.