Asked by
Shaikha Alktheri.
on Nov 24, 2024
Verified
When a firm is experiencing decreasing marginal costs,it could be because
A) The average costs are increasing
B) The firm is going down its learning curve
C) The firm's marginal productivity is increasing
D) Both C and D
Marginal Costs
The incremental cost involved in producing one more unit of a product or service.
Learning Curve
The concept that people improve efficiency and decrease cost over time as they gain experience in a particular task or operation.
Marginal Productivity
The additional output that is produced by using one more unit of a particular input while keeping other inputs constant.
- Understand the principle of decreasing marginal productivity and its effects on production.
- Understand the connection between economies of scale, diseconomies of scale, and the long-run cost curves.
Verified Answer
KM
Learning Objectives
- Understand the principle of decreasing marginal productivity and its effects on production.
- Understand the connection between economies of scale, diseconomies of scale, and the long-run cost curves.