Microeconomics Question from Walter E. Williams:Edit

Explain how cost curves are "monetized" values of product curves.

AnswerEdit

True, because:

Failed to parse (lexing error): MC = \frac{ΔdTC}{ΔdQ} = \frac{ΔdTC}{ΔQ_L} * \frac{ΔdQ_L}{ΔQuantity} = P_L * \frac{1}{\frac{ΔdQuantity}{ΔdQ_L}} = P_L * \frac{1}{MP_L}

Because price determines the productivity of labor and that has a relationship with the wage, some expression of the two will be equal. But because of math (see above) they are reciprical.

equilibrium condition from the labor market:

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