Fill in the Blank QuestionFill in the blank question.A firm's long-run average total costs may decline over a wide range of output due to of scale.

The correct phrase to fill in the blank is "economies" of scale.

Explanation

In economics, "economies of scale" refer to the cost advantages that organizations experience when production becomes more efficient, as they scale up their operations. As the quantity of output increases, the average total cost per unit may decrease due to several factors, including the ability to spread fixed costs over a larger number of goods, operational efficiencies, and purchasing inputs in bulk at reduced prices. This phenomenon allows firms to optimize their operational processes and reduce their marginal costs, leading to a long-run average total cost curve that slopes downward over a range of output levels.