A firm can be experiencing economies of scale while operating on an upward portion of the long- run average cost curve.

Name: A firm can be experiencing economies of scale while operating on an upward portion of the long- run average cost curve.
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Question

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Economies of scale occur when the long-run average cost curve is downward sloping, indicating that costs per unit decrease as output increases. An upward portion of the curve indicates diseconomies of scale.

A Firm Can Be Experiencing Economies of Scale While Operating