Marginal Product and Marginal Cost Review

The video explains why the marginal cost curve is U-shaped, focusing on the law of diminishing marginal returns. It discusses how marginal cost decreases as marginal product increases due to specialization, and increases when marginal product decreases. A numerical example is provided to illustrate these concepts, showing how changes in labor affect total and marginal costs.

What new insight or understanding did you gain from this video?