Economies of scale lead to declining long-run average cost curves.

Name: Economies of scale lead to declining long-run average cost curves.
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Economies of scale occur when a firm's average cost per unit of production decreases as its output increases. This is due to factors such as specialization, bulk purchasing, and more efficient use of resources. As a result, as a firm grows larger and produces more, its long-run average cost curve will shift downward, indicating lower costs per unit.

Economies of Scale Lead to Declining Long-Run Average Cost Curves