If LAC curve falls as output expand this is due to
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Explanation:
Long run average cost is the cost per unit of output reasonable when all factors of production are variable. Long Run Average cost is of 'U' shaped because of returns to scale.
In the establishment, firms enjoy lots of economies to scale so its cost curve is downward sloping. Increasing income to scale applies when firms enjoy economies to scale. In the beginning, the factors of production are not exhausted.
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