(Figure: Long-Run Average Cost) Use Figure: Long-Run Average Cost.This firm has _____ in the output region from 0 to A.

A) decreasing returns to scale
B) constant returns to scale
C) increasing returns to scale
D) negative costs of production

Returns to Scale

The change in output resulting from a proportional change in all inputs used in the production process.

Long-Run Average Cost

is the average cost per unit of output achieved when all factors of production, including capital, are variable, often represented by a curve showing economies of scale.

Production Costs

The expenses incurred in the process of creating a product or service, including materials, labor, and overhead.