When an increase in the firm's output reduces its long-run average total cost,it achieves _____ scale.

A) economies of
B) diseconomies of
C) constant returns to
D) variable returns to

Economies of Scale

Cost advantages achieved by increasing production levels, resulting in lower per-unit costs due to spreading fixed costs over more units.

Long-Run Average Total Cost

A concept in economics that represents the per-unit cost of production in the long term, where all inputs are considered variable.

Scale

Refers to the size or level of operation of a process or system, often used in contexts of production, distribution, or analysis.