The shape of the MC curve is inversely related to the shape of the marginal product curve.

Question

Quizplus · Accepted Answer

The shape of the marginal cost curve is inversely related to the shape of the marginal product curve. This is because as marginal product increases, marginal cost decreases, and vice versa. Therefore, when the marginal product curve is steep (i.e. a small increase in input leads to a large increase in output), the marginal cost curve is relatively flat (i.e. the cost of producing additional units is relatively low). Conversely, when the marginal product curve is relatively flat (i.e. a large increase in input is needed to produce a small increase in output), the marginal cost curve is steep (i.e. the cost of producing additional units is relatively high).

The Shape of the MC Curve Is Inversely Related to the Shape