How does an increase in the marginal product of labor affect the marginal cost of production, assuming other factors remain constant?

When the marginal product of labor increases, it means that each additional worker is producing more goods than before. This higher productivity allows a company to create more products without needing to spend as much on labor for each unit produced. As a result, the marginal cost of production, which is the cost of producing one more unit, decreases. For example, if a factory hires an extra worker who can produce 10 additional items, the cost per item goes down because the labor cost is spread over more products. Therefore, an increase in the marginal product of labor leads to lower marginal costs, making production more efficient.