(Answered) If labor is the variable input, then marginal cost equalsIf labor is the variable input, then…

➤ How do you derive marginal cost from labor cost?
Compute MC as the change in total cost divided by the change in output. With wage w and an additional worker supplying MPL units, the extra cost equals w. Divide that cost by the extra output. Thus MC = w divided by MPL, giving the cost per additional unit produced.