A firm expands its scale of production and finds that it is able to negotiate better prices with its suppliers.

Which of the curves best applies to this firm?

Economies of Scale

Explanation:

If a firm expands its scale of production and finds that it is able to negotiate better prices with its suppliers then the curve that best applies to the firm is 'economies of scale'

Economies of scale is a concept in microeconomics that holds that there are benefits of cost reduction that is due to an enterprise when it increases its scale of operation.

The benefit is better demonstrated in the average cost per unit because as more and more units are produced, lesser and lesser portion of the fixed costs of the overhead fixed costs become attributable to each unit and even the variable cost falls because material price becomes cheaper as a result of quantity discounts, even labour could double their output with overtime payment which is less than doubling wages.