The short run is that time period in which a. a firm's explicit costs for labor and raw materials are constant. MP L decreases as labor, L, increases. If, at a given quantity of labor, MP L is greater than AP L , then a. AP L is increasing. AP L is decreasing. TP L is at a maximum.
L is at a maximum.
MP L is increasing and AP L is decreasing. MP L is decreasing and AP L is increasing. MP L is increasing and AP L is decreasing. MP L is decreasing and AP L is increasing. If labor L is the variable input in the short run, then a. MC is at a minimum when MP L is at a maximum.