The first three questions involve production in the long-run. These firms are not necessarily in perfectly competitive markets, 1. If a firm is operating with economies of scale, what can we infer? a. This firm is likely to expand its operations b. This firm is not likely to expand its operations 2. If an industry always experiences diseconomies of scale, it is likely that the market will have... a. Very large firms producing many units b. Very small firms producing very few units