What is the relationship between marginal product and margin

What is the relationship between marginal product and marginal cost in the short run?

Solution

Marginal product and marginal cost are negatively related to each other.Marginal product is increase in total product due to one unit increase in variable factor..Marginal cost is increase in total cost due to one unit increase in total product.According to the law of variable proportions,Initially as output rises,Marginal product of variable inpuut rises.So initially, marginal cost falls as output rises.

Then at second stage, marginal product of variable input falls after a certain point according to the law of diminishing marginal productivity, which implies as more units of variable input applies to fixed input, marginal product of variable input falls.So,Marginal cost rises after a certain level of output.Marginal product first rises,reaches maximum ,then falls after certain point.Accordingly,Marginal cost first falls,reaches minimum, then rises after a certain level., leading to its U shape.