What should a firm do once it realizes it is in a situation with a diminishing marginal product?
What should a firm do once it realizes it is in a situation with a diminishing marginal product?
Drag word(s) below to fill in the blank(s) in the passage.
The firm –
stop producing additional units. If marginal product is -, the firm should continue production if it can sell the output for more than the –
costs.
capital
increase
should not necessarily
still high
input
should
low