Long-run economies of scale exist when the long-run average cost curve

A) rises.
B) remains constant.
C) falls.
D) does not exist.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Average Cost Curve

A graphical representation that illustrates the cost per unit of output at different levels of production.

Long-run

A period in economics where all factors of production can be varied, and there are no fixed inputs, allowing full adjustment to changes.