Concept Introduction:
Marginal Product of Labor: It refers to the additional units of output, which is produced by employing an additional unit of labor in the current labor force.
![EBK ECONOMICS, Chapter 11, Problem 8P , additional homework tip 1](https://content.bartleby.com/tbms-images/9781464143847/Chapter-11/images/html_43847-11-8p_1.png)
Here,
is the change in quantity.
is the change in labor.
is the marginal product of labor.
Marginal Cost (MC): It refers to the rate by which the total cost of the produced good changes when the production increases by a single unit. As the fixed cost is constant irrespective of production, so the marginal cost depends on the variable cost only in the short run. Marginal cost is calculated as follows:
![EBK ECONOMICS, Chapter 11, Problem 8P , additional homework tip 5](https://content.bartleby.com/tbms-images/9781464143847/Chapter-11/images/html_43847-11-8p_5.png)
Here,
is the marginal cost.
is the change in total cost
is the change in quantity.
Fixed cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of an increase or decrease in output.
Marginal Cost: It refers to the additional cost from an additional unit of output. It is generally the additional variable cost.
![EBK ECONOMICS, Chapter 11, Problem 8P , additional homework tip 9](https://content.bartleby.com/tbms-images/9781464143847/Chapter-11/images/html_43847-11-8p_9.png)
Here,
- MC is the marginal cost.
is the change in total cost
is the change in quantity.
![EBK ECONOMICS, Chapter 11, Problem 8P , additional homework tip 12](https://content.bartleby.com/tbms-images/9781464143847/Chapter-11/images/html_43847-11-8p_12.png)
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
![Text book image](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)