Its long-run average costs begin to increase.
Average Cost is the manufacturing cost determined by dividing Total Cost (TC) by Total Output (TO) (Q). When we refer to the production cost per unit, we indicate that both fixed and variable costs are taken into account when determining the average cost. It is also known as Per Unit Total Cost as a result.
The term "average cost" refers to the production cost per unit, which is determined by dividing the overall production cost by the overall number of units produced. In other words, it calculates how much money is required for each unit of production produced by the company.
Learn more about Average Cost here
https://brainly.com/question/25799822
#SPJ4
