Question

Explain why the mp and mc move in opposite directions

Answer 1

Marginal cost and marginal product are essentially looking at the same thing from two different directions.Marginal cost is asking how much money you need to spend to produce a given output. The money you need is the price of inputs times the quantity of inputs you'll need to buy. So it's basically how much input you need per output.Marginal product is asking how much output you'll get from a given amount of input...