QUESTION 11 Choose the correct statement regarding short-run and long-run costs? (Assume all cost curves have typical shapes, e.g., average total cost and average variable cost are U-shaped.) A firm able to exploit economies of scale will find that marginal cost always falls as output increases over the output range of economies of scale. Average fixed cost always rises as output increases. The law of diminishing returns implies that the short-run marginal cost curve must eventually decrease with increased output. Long-run cost curves are generally flatter than short-run cost curves. O None of the statements are correct