Question

Show the relationship between short-run MC and MPL both mathematically and graphically.

Answer 1

Note that ΔL / ΔQ is the inverse of the MPl. Therefore MC are inversely related to productivity. MC = w / MPl. The higher the marginal product of labor, i.e., the more productive labor is, the lower the marginal costs of producing output.

Answer 2

Answer:

Above answer is correct