If a firm's average total cost falls in the long run over a certain range of output, then:

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When a firm's average total cost falls in the long run over a certain range of output, it is subject to economies of scale over that range of output. This means that the firm is experiencing cost savings as it increases its level of production. This is often due to factors such as specialization, increased use of capital equipment, and improved management.

If a Firm's Average Total Cost Falls in the Long