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

Question

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

Quizplus · Accepted Answer

When a firm is experiencing decreasing marginal costs, it means that the cost of producing each additional unit of output is decreasing. This can be due to a number of factors, including the firm's increasing marginal productivity (i.e., the firm is becoming more efficient at producing each additional unit of output) and the firm's going down its learning curve (i.e., the firm is becoming more experienced at producing the product, which leads to lower costs).

When a Firm Is Experiencing Decreasing Marginal Costs,it Could Be