The marginal cost first decreases and then increases because of the law of diminishing returns. Initially, as more units are produced, the cost per unit decreases due to economies of scale. However, after a certain point, additional units may require more resources or become less efficient, causing the cost per unit to increase.
At first, marginal cost decreases due to specialization of workers. Then, MC begins to increase steadily. The only benefits of MC are in the period of specialization.
If the marginal cost is less than the average variable cost, the average variable cost will decrease.
increase output
If a firm's marginal revenue is greater than its marginal cost, it should increase production to maximize profits.
When marginal productivity is diminished, the cost of productions can decrease if the marginal costs for making an extra product is larger than the marginal revenue for that 1 extra unit product.
Marginal cost is the increase or decrease in the total cost of a production run for making one additional unit of an item.
Decrease The higher the marginal rate, the more a person or firm is shielded from expenses.
Marginal cost is change in total cost due to increase or decrease one unit or output. It is technique to show the effect on net profit if we classified total cost in variable cost and fixed cost.
To increase profit the firm will decrease output to a point where MC=MR. This is the Profit Maximisation point
Marginal cost is
At first, marginal cost decreases due to specialization of workers. Then, MC begins to increase steadily. The only benefits of MC are in the period of specialization.
If the marginal cost is less than the average variable cost, the average variable cost will decrease.
increase output
decrease cause the number is coming up
If a firm's marginal revenue is greater than its marginal cost, it should increase production to maximize profits.
When marginal productivity is diminished, the cost of productions can decrease if the marginal costs for making an extra product is larger than the marginal revenue for that 1 extra unit product.
When marginal cost is below average total cost, average total cost tends to fall, as each additional unit produced is less expensive than the average of previous units. Conversely, when marginal cost is above average total cost, average total cost rises, since producing additional units adds more cost than the average. Thus, if marginal cost is falling while it is below average total cost, it could lead to a further decrease in average total cost, while rising marginal cost above average total cost would increase it.