Suppose Heidi's Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be

A) upward sloping to the right.
B) downward sloping to the right.
C) horizontal.
D) U-shaped.

Economies of Scale

Refer to the cost advantages that enterprises obtain due to their scale of operation, typically resulting in the reduction of cost per unit.

Diseconomies of Scale

The phenomenon when a company or business grows so large that the costs per unit increase, leading to inefficiency.

Long-Run

A time period in economics where all inputs are variable, allowing firms to adjust all factors of production.