The marginal product of a firm's workers is revealed by the shape of the marginal cost curve.

Question

Quizplus · Accepted Answer

The marginal product of labor is inversely related to the marginal cost of production. As the marginal product of labor increases, the marginal cost of producing an additional unit decreases, and vice versa. This relationship is reflected in the shape of the marginal cost curve, where changes in the slope indicate changes in the marginal product of workers.

The Marginal Product of a Firm's Workers Is Revealed by the Shape