Average and marginal product of labor AP, MP 2 4 $0.25 $5 $6.67 $7.06 $10.25 6 L 8 I 10 12 AP Labor MP Above is a firm's average product of labor and marginal product of labor curves. The price of labor is $60 per unit. When the firm us units of labor, what is marginal cost?

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Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.