In the short run when the marginal product of labor ________, the marginal cost of an additional unit of output ________.
A) rises; rises
B) falls; rises
C) rises; doesn't change
D) falls; falls

Question

Quizplus · Accepted Answer

In the short run, when the marginal product of labor falls, it means that each additional worker is adding less output than the previous one. This leads to an increase in the marginal cost of producing an additional unit of output because more labor (which is costly) is required to produce the same amount of output.

In the Short Run When the Marginal Product of Labor