In the long run, a firm might experience rising average total costs due to

A) economies of scale.
B) diseconomies of scale.
C) the law of supply.
D) the law of diminishing marginal returns.

Diseconomies of Scale

The point at which a company or business grows so large that the costs per unit increase, leading to inefficiency and increased production costs.

Economies of Scale

Cost benefits that organizations acquire by scaling up their operations, wherein the cost for each unit produced tends to fall as the scale of operation enlarges.