Correct Answer: Option C

Explanation

In the long run, all factors of production are variable. Therefore, a firm can adjust all its inputs to achieve the most cost-effective
way of producing goods. This leads to increasing returns to scale, which means that as the scale of production increases, the
average cost of production decreases. This is because the firm can take advantage of economies of scale, such as bulk buying of
inputs, spreading administrative costs over a larger output, and using more efficient capital machinery.

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