A firm's short- run marginal cost curve is decreasing when
A) capacity is reached.
B) marginal product is decreasing.
C) marginal product is increasing.
D) average fixed cost is decreasing.
E) total fixed cost is decreasing.

Question

Quizplus · Accepted Answer

When the marginal product is increasing, it means that each additional unit of input is producing more output than the previous unit, leading to a decrease in marginal cost.

A Firm's Short- Run Marginal Cost Curve Is Decreasing When