Question

Why cost of production decreases with increased in output?

Answer 1

Answer:

Explanation:bcoz the goods are present at plentiful quantity. The competition bw the salers increase and everyone wants to sell their goods. Moreover, they they keep marked price High , another person may sell it at cheaper rates that would attract customers.

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Answer 2

When production increases cost decreases because there is such category of costs as constant costs that don't change with changing the production level for example rent of equipment insurance salary of workers thus when production increases average cost per a unit decreases.