If a firm experiencing "economies of scale" decreases its output, its long-run average cost will decrease.

Name: If a firm experiencing "economies of scale" decreases its output, its long-run average cost will decrease.
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Economies of scale mean that the firm experiences decreasing long-run average cost as output increases. Therefore, if the firm decreases its output, it will likely experience diseconomies of scale and see an increase in long-run average cost.

If a Firm Experiencing "Economies of Scale" Decreases Its Output