Answered: Since marginal cost is the reciprocal…

Since marginal cost is the reciprocal of marginal product times the input price, it decreases as marginal product increases and increases when marginal product is decreasing.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Why is this the case?

Since marginal cost is the reciprocal of marginal product times the input price, it decreases as
marginal product increases and increases when marginal product is decreasing.

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