Using symbols, we can write that the marginal product of labor is equal to delta q/ delta l. marginal cost is equal to delta tc/ delata q. because fixed costs by definition don't change, marginal cost is also equal to delta vc/ delta q. if jill johnson's only variable cost is labor cost, then her variable cost is just the wage multiplied by the quantity of workers hired or wl.
a. if the wage jill pays is constant, then what is delta vc in terms of w and l?
b. use your answer to question a and the expressions given above for the marginal product of labor and the marginal cost of output to find an expression for marginal cost of output to find an expression for marginal cost, delta tc/ delta q, in terms of the wage, w and the marginal product of labor delta q/ delta l.
c. use your answer to question b to determine jill's marginal cost of producing pizzas if the wage is $750 per week and the marginal product of labor is 150. if the wage falls to $600 per week and the marginal product of labor is unchanged, what happens to jill's marginal cost? if the wage is unchanged at $750 per week and the marginal product rises to 250, what happen's to jill's marginal cost?