Exhibit 12-8 The long-run total cost schedule of a perfectly competitive firm that produces walnuts is as follows: Pounds of Walnuts 1,000 2,000 3,000 4,000 5,000 6,000 Total Cost $3,000 $5,500 $7,500 $8,000 $11,000 $15,000 Refer to Exhibit 12-8. A firm expanding from producing 1,000 to 2,000 pounds of walnuts in the long run is experiencing: diseconomies of scale. economies of scale. an increasing average fixed cost. constant returns to scale.