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When marginal product increases, marginal cost increases. True False

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 34CTQ: What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why...

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Expert Solution

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Marginal product is the additional output produced by the additional worker or the change in the output with a change in a unit of labor.

Marginal cost is the change in output with respect to change in the additional unit of labor.

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