A firm experiences a shift in its long-run average cost curve from LRAC1 LRAC_1\,LRAC1 to LRAC2 LRAC_2\,LRAC2 as shown in the diagram.
What is the most likely cause of this shift?
The firm purchasing bulk raw materials at a discount as it increases its own scale of production
The regional development of specialized transport networks and infrastructure dedicated to servicing firms in the industry
An increase in global commodity prices causing raw material shortages for all firms in the sector
A loss of coordination and poor staff morale arising from the firm expanding its own workforce beyond its manageable capacity
