Please help me write what are the interesting statement in this section and why

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Please help me write what are the interesting statement in this section and why is it important to know at economics

9.5 IS MARGINAL COST STABLE? Business firms continuously investigate methods of reducing marginal cost (This is indicated by a rightward shift of the curve, showing that the marginal cost at any quantity is less.) There are two basic reasons for a reduction in marginal cost. First, the prices of one or more variable inputs might fall. For example, the market supply of production materials could increase, driving the price of the input downward. Alternatively, the productivity of a variable input might increase. Return to the earlier case demonstrated in Exhibits 9-0 and 9-D. Notice that the price of the variable input D is $10. lf the price changed to $9, then the marginal cost will change. (See the left side of Exhibit 9-G.) Prior to the change, the marginal cost ranged from $4.36 to $21.30 Afterward, the marginal cost ranged from $4.33 to $20.57 The reduced price of the input caused the variable cost of input D to decline at all output levels. Because the variable costs of the factor are cheaper, the marginal cost declines at each quantity Exhibits 9-C, 9-D and 9-G (right side) also demonstrate the impact from productivity improvement Notice that efficiency of the production process increased because less E is utilized in combination with the other inputs. The same levels of output are being produced with less input E. As a result, the total variable costs of production decline for each potential quantity. The marginal cost declines from the original estimate. With better productivity, marginal cost ranges from $2.36 to $15.30. Productivity improvements may often be attributed to advances in technology or the knowledge of the managers. Capital and other fixed inputs can be enhanced, which leads to productivity gains in variable inputs such as labor. Of course, this involves a long-run decision to change the plant and equipment. Improved robotics in manufacturing is but one example. Related to technology is the acquisition and use of information In both realms of time

Explanation / Answer

The important statements in this paragraph are:

1) two reasons for reduction of marginal cost, one price of one or more variable input decreses, two productivity of one or more varriable input increses

Marginal cost is the increse in cost per unit increase of output, it helps in determining the profit maximizing output in an economy

2) Productivity improvement may be attributed to improve in technology or the knowledge of the managers

Improvemnet in technology and knowledege in an economy, while keeping other inputs constant increses the total output in an economy

3) Capital and other fixed inputs can be enhanced, which leads to productivity gain in variable input such as labour and thus in the long run it may be decided to increse the size of the plant

4) Various taxes such as sales, revenue, income and payroll taxes when reduced decreses the marginal cost. While inrese in environmental restrictions and mandates of employee benefits add to the marginal cost of the firm

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