Over all levels of output, if a firm's long-run average cost curve declines as output increases, then

A) small firms and large firms will have identical average costs.
B) there should be a large number of firms in the industry.
C) small firms would have lower average costs of production than large firms.
D) there should be only one firm in the industry.

Long-Run Average Cost Curve

A graphical representation that shows the lowest average cost at which a firm can produce any given level of output in the long run, when all inputs are variable.

Small Firms

Businesses that operate on a smaller scale than larger enterprises, often characterized by fewer employees and lower income or revenue.

Large Firms

Enterprises or corporations that operate on a large scale, typically having significant market power, resources, and complex organizational structures.