When a firm is experiencing decreasing marginal costs it imp

When a firm is experiencing decreasing marginal costs, it implies

Solution

When a firm is experiencing decreasing marginal costs, it implies: C = There are increasing marginal productivity.

Explanation: A typical marginal cost curve is U shaped, which means that the marginal cost first decreases and then afterwards it starts to increase as we produce more goods. When the marginal costs are decreasing it means there is an efficiency in production and the marginal productivity is increasing. Marginal productivity typically has an inverted U shaped curve, it first increases and then starts to decrease.

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