Besides the technological reasons for increasing returns to scale or decreasing costs, there are financial reasons that arise as the size of the firm increases. Of bulk purchases, larger firms are more likely to receive quantity discounts in purchasing raw materials and other intermediate (i.e., semiprocessed ) input than smaller firms. Large firms can usually sell bonds and stocks more favorably and receive bank loans at lower interest rates than smaller firms. Large firms can also achieve economies of scale or decreasing costs in advertising and other promotional efforts. For all these technological and financial reasons, the LAC curve of a firm is likely to decline as firm expands and becomes larger.