If a firm's long-run average total costs increase as it increases its scale of production,the firm is experiencing

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When a firm's long-run average total costs increase as it increases its scale of production, it indicates that the firm is experiencing diseconomies of scale. This can happen due to a variety of reasons such as difficulty in coordinating large-scale production, communication breakdowns, and increased managerial difficulties.

If a Firm's Long-Run Average Total Costs Increase as It