In the context of theâ€‹ firm's supplyâ€‹ curve, as the firm produces more of aâ€‹ good, the cost of producing each additional unit decreases. This implies that the marginal cost of producing a good â-¼ does not change decreases increases as it makes more of that good.

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Business

Adriel Cannon

14 May, 10:37

In the context of theâ€‹ firm's supplyâ€‹ curve, as the firm produces more of aâ€‹ good, the cost of producing each additional unit decreases. This implies that the marginal cost of producing a good â-¼ does not change decreases increases as it makes more of that good.

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Jonah Melton · Answer 1

decrease

Explanation:

Marginal cost is a concept that explains the cost a company has to produce one more unit of good. This is a measure that is associated with the productivity of the inputs used in the production process. When a company increases production, marginal cost tends to decrease as inputs are better utilized. This is because the company specializes in production in order to streamline inputs and increase productivity.