In the long run,when an increase in the quantity of output decreases average total cost,this is called:

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When an increase in the quantity of output decreases average total cost, it is referred to as economies of scale. This means that as production increases, the cost per unit of production reduces. This could be due to factors such as better utilization of resources, specialization of labor, or bulk purchasing of materials. This results in higher profits for the company as they can sell more products at a lower cost per unit.

In the Long Run,when an Increase in the Quantity of Output