When the marginal product of labor rises A. the marginal cost of production falls. B. the marginal cost of production will exceed the average total cost. C. the marginal cost of production also rises. D. the average total cost of production also rises.

Question

Business

Anne Downs

29 September, 12:17

When the marginal product of labor rises A. the marginal cost of production falls. B. the marginal cost of production will exceed the average total cost. C. the marginal cost of production also rises. D. the average total cost of production also rises.

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Answers (1)

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Marina Cummings · Answer 1

A. the marginal cost of production falls.

Explanation:

The marginal product of labor refers to the change in the output when a unit of labor is added and the marginal cost of production is the change in the cost when an additional unit is produced.

The marginal product of labor and the marginal cost of production are inversely related because if the marginal product of labor increases, it means that the organization has to pay less money to the labor in regards to the number of products that they produce and the labor cost for each product decreases and as a result, the cost to manufacture each product is lower. According to this, the answer is that when the marginal product of labor rises, the marginal cost of production falls.