On the upward sloping portion of a firm's long-run average cost curve, it is experiencing

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

Long-Run Average Cost Curve

A graphical representation that shows the minimum average cost of production at various levels of output when all inputs, including capital, are variable.

Diseconomies of Scale

A situation in which a company or business grows so large that the costs per unit increase with the level of output.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of the operant increases, typically leading to a lower cost per unit.