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Unformatted text preview: Long run: all inputs are variable Marginal product of labor (MPL): the extra output for the next unit of labor = delta Q/ delta L Law of diminishing returns: adding more workers to land, output is increasing at smaller and smaller rates MPL equals the slope of the production function MPL diminishes as L increases The production gets flatter as L increases Marginal cost, MC = delta TC/ delta Q MC = supply curve in the short run...
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- Spring '09