If a firm experiences productivity gains from employee specialization,its marginal cost

Question

Quizplus · Accepted Answer

Productivity gains from employee specialization typically lead to a decrease in marginal cost because employees become more efficient at their tasks. However, the rate of decrease in marginal cost tends to slow down over time as the most significant efficiencies are gained early on, leading to a scenario where marginal cost decreases at a decreasing rate.

If a Firm Experiences Productivity Gains from Employee Specialization,its Marginal