'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:'
Added by Joanna C.
Step 1
Marginal cost (MC) is the additional cost incurred when producing one more unit of a good or service. It is calculated as the change in total cost divided by the change in quantity produced. Show more…
Show all steps
Your feedback will help us improve your experience
Crystal Wang and 75 other Macroeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Diminishing marginal returns implies Group of answer choices decreasing average variable costs. decreasing marginal costs. increasing marginal costs. decreasing average fixed costs.
Andrew D.
Diminishing marginal product leads to A - rising marginal costs for a seller. B - decreased profitability for a seller. C- lower opportunity costs of producing the item. D- increased supply of the item in the market.
Aparna S.
Marginal cost The accompanying graph shows the hypothetical cost $c=f(x)$ of manufacturing $x$ items. At approximately what production level does the marginal cost change from decreasing to increasing?
Applications of Derivatives
Concavity and Curve Sketching Contents
Recommended Textbooks
Principles of Economics
Macroeconomics
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD