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M5 HIA4: Construct a numerical example to show that as marginal product (MP) rises, marginal cost (MC) falls. Explain your answer and use tables and graphs to illustrate.

josh
September 25, 2013 0 Comment

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Address the following:
1. Construct a numerical example to show that as marginal product (MP) rises, marginal cost (MC) falls. Explain your answer and use tables and graphs to illustrate.
2. If marginal product is continually declining, what does marginal cost look like? Explain your answer using graphs and numerical illustrations to support your arguments.
3. If the ATC curve is continually declining, what does this imply about the MC curve? Explain your answer and use graphs and numerical illustrations to support your arguments.

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