It is common in large breweries for the long-run average total cost to decline as output increases.This indicates that many breweries operate with:

A) diseconomies of scale.
B) diminishing marginal returns.
C) economies of scale.
D) constant returns to scale.

Diseconomies of Scale

The phenomenon where, as a firm or industry grows beyond a certain point, per unit costs start increasing due to inefficiencies.

Economies of Scale

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

Diminishing Marginal Returns

The principle that as additional units of a factor of production are added, the increase in output will eventually decrease, holding other factors constant.