Suppose That a Firm's Long-Run Average Total Costs of Producing

Multiple Choice

Suppose that a firm's long-run average total costs of producing hand-crafted chairs is $300 when it produces 10,000 chairs and $325 when it produces 11,000 chairs. For this range of output, the firm is likely experiencing

A) economies of scale.
B) constant returns to scale.
C) specialization.
D) coordination problems.