GDP is about actual production, not potential; nor about value-added; you have to search themes about new geography

For DMC the important thing is that the TC/Q ratio becomes smaller as time goes by (CT= Total Cost & Q= Quantity produced)

There are several hypotheses (almost infite); few examples:

1- With the new Capital you buy more advanced machines and produce more outputs (with the same inputs: raw material input, human work, energy, etc.);

– In same…

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Exactly; also you can produce the same output, but wit new qualities (realy you are not producing the “same”output, but another one, diferenciating from competition), etc.

If you continue producing “K” ouput with the same “X” input as before you don’t have dmc; with the same “X” input you must now produce “K+n” output to have dmc

I think decreasing marginal cost applies when with the (new) capital you invest in new technology and/ or new knowledge of the human factor (abilities); if you only expand the production using same technology & human you don’t have decrease marginal cost and instead, you can have “increased” m.c. because you add more complexity needing more…

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I think both: hired sell their capacity to transform inputs in a higher value output; time & knowledge & strength (some professions) are the variables intrinsic to the transformation process. Yes you extend “time” but also “knowledge” & “force” to the organization, but mainly capaciy to “transform” inputs in valuable outputs.

But I disagree…

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