Question

marginal production can be measured by marginal physical product ​

Answer 1

Answer:

MC = ∆VC∕∆Q; ∆VC = w∆L; ∆L∕∆Q (the change in quantity of labor to effect a one unit change in output) = 1∕MPL. Thus if the marginal product of labor is rising then marginal costs will be falling and if the marginal product of labor is falling marginal costs will be rising (assuming a constant wage rate).