3/17 - of the final unit of labor. MC= total cost...

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3/17/08 In the short run a firm can only change the number of employees (not the size of the factory) = marginal product of labor= the increase in output that resulted from the addition
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Unformatted text preview: of the final unit of labor. MC= total cost resultingfrom the last unit of output The law of eventually diminishing marginal product Suppose each unit of labor cost $300...
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