​You would expect that your firm is experiencing decreasing returns to scale if

A) ​Long run average costs increase with output
B) Long run average costs decrease with output
C) Long run average costs are constant with respect to output
D) ​None of the above

Long Run

Period in which all inputs or factors of production can be varied, and all costs are variable, allowing companies to adjust to changes in market demand or production capabilities.

Average Costs

A calculation that determines the cost of producing one unit of goods by averaging the total production costs.

Returns to Scale

A concept in economics that describes how the increase in inputs affects the level of output of a production process.