9 The LRATC reflects the costs of production for plants of various sizes. When economies of scale are present (that is, when larger plants have lower per unit costs of production), LRATC will decline. When constant returns to scale are experienced, LRATC will be constant. A rising LRATC is also possible. Bureaucratic decision-making and other diseconomies of scale may (although not necessarily) cause LRATC to rise.