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The? long-run average cost of production might increase as output increases due to

The? long-run average cost of production might increase as output increases due to

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Answer #1
The reason for increase in long run average cost of production with the increase of output due to application of Law of diminishing returns to scale.
The diminishing returns to scale means that as and when the production increases the total of cost of production tends to rise more than proportionate increase in output. This is due to many reasons like inefficiency peeped in production, loose control due to increased scale, etc.
Therefore, the reason for increased average cost of production in long run is applicability of Law of diminishing returns to scale.
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