Question

Suppose that labor is the only variable input to the production process. If the marginal cost of production is diminishing as more units of output are​ produced, what can you say about the marginal product of​ labor? If the marginal cost of production is diminishing as more units of output are​ produced, then the marginal product of labor

Answer 1

Answer:

Marginal product will increase.

Explanation:

Since the labor is only variable input and the marginal cost of production is diminishing that means the cost of producing additional unit is lower. So marginal product of labor will be increasing.

Moreover, MC = w /MPL

Thus, diminishing marginal cost will exhibit increasing marginal product of labor.