⚙ MP → MC: How Productivity Determines Cost

When Marginal Product rises, Marginal Cost falls — and vice versa. MC = w ÷ MP

Marginal & Average Product vs L — hover to explore 🔍

MP (Marginal Product)

AP (Average Product)

Marginal & Average Variable Cost vs Q — hover to explore 🔍

MC (Marginal Cost)

AVC (Average Variable Cost)

🔥 Input Price

Wage (w)$30

Wage shifts cost curves — not product curves!

MC = w ÷ MP | AVC = w ÷ AP

🔧 Technology (shapes both sides)

α (linear)2.15

β (quadratic)-0.130

γ (cubic)0.0038

L(Q) = αQ + βQ² + γQ³

Key connection:
MC = w ÷ MP and AVC = w ÷ AP