Consider the Following Statements When Answering This Question

question 126

Multiple Choice

Consider the following statements when answering this question.
I. A technology with increasing returns to scale will generate a long-run average cost curve that has economies of scale.
II. Diminishing returns determines the slope of the short-run marginal cost curve, whereas returns to scale determine the slope of the long-run marginal cost curve.

• A) I is true, and II is false.
• B) I is false, and II is true.
• C) Both I and II are true.
• D) Both I and II are false.

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Definitions:

ECM

Stands for Engine Control Module, a computer that controls various engine functions such as fuel injection, ignition timing, and emissions.

ECU

Stands for Engine Control Unit, a computer within a vehicle that controls various aspects of the engine's operation, including timing, air/fuel mixture, and more.

Truck System

A comprehensive arrangement of components and mechanisms which constitute the functionality of a truck, including its engine, transmission, drivetrain, and electronics.

Truck Data Bus System

A digital communication network in trucks that carries data between various electronic control units (ECUs).