Answer-If a firm is experiencing economies of scale:

Explanation Economies of scale mean that as a firm increases output, the long-run average cost falls due to factors like specialization and bulk purchasing.

Question

If a firm is experiencing economies of scale:

A Its long-run average cost is increasing

B Its long-run average cost is constant

C Its long-run average cost is decreasing

D It is producing less than its capacity

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If a firm is experiencing economies of scale:

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