If a firm experiences productivity gains from employee specialization, its marginal cost.

A. increases at an increasing rate.
B. decreases at an increasing rate.
C. decreases at a decreasing rate.
D. decreases at a constant rate.
E. increases at a decreasing rate.

correct option is C. decreases at a decreasing rate.

Explanation:

solution

when an organization gain productivity than its marginal cost will be decreases at a decreasing rate  

as here when initial specialization of employee is lead to an significant reduction in the marginal costs though the more specialized people get

and less additional amount is save due to the  specialization

so here correct option is C. decreases at a decreasing rate.

Explanation:

The formation of a company is a lengthy process. For convenience the whole process of company formation may be divided into the following four stages: 1. Promotion Stage 2. Incorporation or Registration Stage 3. Capital Subscription Stage 4. Commencement of Business Stage.