If information about the total cost is not given for every possible 1 unit change in quantity,marginal cost can still be computed as
A) the price of labor divided by the quantity of labor.
B) the price of labor divided by the marginal product of labor.
C) fixed cost divided by the marginal product of labor.
D) variable cost divided by the marginal product of labor.

Question

Quizplus · Accepted Answer

Marginal cost can be computed as the change in total cost that results from a one-unit increase in output. If information about the total cost is not given, marginal cost can still be calculated by dividing the price of labor by the marginal product of labor. This is because the marginal product of labor measures the additional output that results from hiring one more unit of labor, and dividing the price of labor by this marginal product gives us the cost of producing an additional unit of output.

If Information About the Total Cost Is Not Given for Every