How would the long run total cost curve change if the price of capital increase?

Economies of scale

Economies of scale are the advantages that an organisation gains due to an increase in size. These will lead to a decrease in the average costs of production

Diseconomies of scale

Diseconomies of scale are the disadvantages that an organisation experiences due to an increase in size. They will increase the average costs per unit.

Both economies and diseconomies of scale apply at all levels of output, but economies predominate at low outputs and diseconomies at high outputs.

so the curve of long run total cost depends on what type of economies of scale there are.

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