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

A) diseconomies of scale
B) constant returns to scale
C) economies of scale
D) negative costs of production

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Constant Returns

A situation in production where increasing the inputs by any proportionate amount results in an equal proportionate increase in outputs.

Production Costs

The total expense incurred in manufacturing a product or providing a service, including labor, materials, and overhead costs.