The decreasing portion of a firm's long run average cost curve is attributable to:

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Economies of scale refer to the cost advantages that firms experience when they increase their scale of production. As firms increase production, they are able to spread their fixed costs over more units, which leads to a decrease in average cost. This decreasing portion of the long run average cost curve is the result of economies of scale.

The Decreasing Portion of a Firm's Long Run Average Cost