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Which of the following could explain what is happening as output moves from A to C on the long-run ATC curve in the above graph?
As a firm's factory becomes more crowded, additional output begins to decrease.
The firm increases its inputs by 15%, and outputs only increase by 10%.
The rates the firm pays for electric power fall.
Property taxes are decreased by the municipality in which the firm operates.
Increasing specialization among the firm's workers leads to increasing returns to scale.