Economies and diseconomies of scale explain

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Economies and diseconomies of scale explain why the firm's long-run average cost curve is U-shaped. As a firm increases its level of production, it experiences economies of scale, which allows it to produce more efficiently and reduce average costs. However, if the firm continues to increase its production beyond a certain point, it will eventually experience diseconomies of scale, which increase average costs. This results in the U-shape of the long-run average cost curve. The other options (A, B, and D) are not directly related to economies and diseconomies of scale.

Economies and Diseconomies of Scale Explain