Suppose Greg's Carpet Factory experiences economies of scale up to a certain point and constant returns of scale beyond that point.Its long-run average cost curve is most likely to be

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Economies of scale cause the long-run average cost to decrease as output increases, leading to a downward sloping curve initially. Beyond the point of economies of scale, constant returns to scale mean that the long-run average cost remains constant regardless of output level, resulting in a horizontal line. Combining these two segments, the curve appears L-shaped.

Suppose Greg's Carpet Factory Experiences Economies of Scale Up to a Certain