For economies of scale, a(n) ________ in a firm's scale of production leads to ________ average total cost.

A) increase; lower
B) increase; higher
C) decrease; lower
D) decrease; no change in

Scale of Production

Refers to the level at which production activities are aggregated or expanded, affecting the unit costs and capability of the production process.

Lower

To decrease in position, value, or condition.

Average Total Cost

The total cost of production divided by the number of units produced, encompassing both fixed and variable costs.