When a firm is experiencing decreasing marginal costs,it implies
A)There are diminishing marginal productivity
B)There are increasing average costs
C)There are constant marginal productivity
D)There are increasing marginal productivity

Question

Quizplus · Accepted Answer

When a firm experiences decreasing marginal costs, it means that the additional production of each unit results in a lower cost of production. This implies that the firm is experiencing increasing marginal productivity, as it is able to produce more output with the same amount of resources.

When a Firm Is Experiencing Decreasing Marginal Costs,it Implies