When a firm is experiencing decreasing marginal costs,it implies
A)marginal productivity is decreasing
B)workers are getting more unproductive
C)a constant marginal productivity
D)increasing marginal productivity

Question

​When a firm is experiencing decreasing marginal costs,it implies
A)​marginal productivity is decreasing
B)workers are getting more unproductive
C)a constant marginal productivity
D)​increasing marginal productivity

Quizplus · Accepted Answer

Decreasing marginal costs imply increasing marginal productivity. This means that as more units of output are produced, the cost of producing each additional unit decreases because the input of resources becomes more efficient. Therefore, workers may be becoming more productive, technologies may be improving, or there may be other factors increasing efficiency. Options A and B are incorrect because decreasing marginal costs imply increasing, not decreasing or constant, marginal productivity. Option C is incorrect because decreasing marginal costs imply a change in marginal productivity.

​When a Firm Is Experiencing Decreasing Marginal Costs,it Implies

When a Firm Is Experiencing Decreasing Marginal Costs,it Implies