Saturday, August 13, 2011

I need help, with stating this answer into simplier terms, can someone please help me!?

Marginal cost initially decreases as more bags are produced because the fixed costs are spread over more units and because the workers begin to specialize. After a certain point, however (4 bags), the marginal cost begins to increase because the benefits of specialization are exhausted and more workers begin to share a fixed production facility.

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