If labor is a firm's only variable input, marginal cost ultimately depends on
A)fixed cost
B)how much profit is made
C)the price of the good produced
D)how much output each worker produces
E)fixed cost per unit

Question

Quizplus · Accepted Answer

Marginal cost ultimately depends on how much output each worker produces, as labor is the only variable input. As each additional worker is hired, the marginal cost will depend on how much additional output they are able to produce.

If Labor Is a Firm's Only Variable Input, Marginal Cost