Use the Following Statements to Answer This Question

question 24

Multiple Choice

Use the following statements to answer this question:
I. The scale economies index is positive if the cost-output elasticity that is greater than one.
II. A negative scale economies index indicates the presence of diseconomies of scale.

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

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Definitions:

Federal

Federal refers to the national level of government, and the system of government that unites states or provinces within a country under a central authority.

State Court

A court that is established by the laws of a state within the United States, having jurisdiction over matters specific to that state.

Diversity of Citizenship

A basis for federal court jurisdiction when parties in a lawsuit are citizens of different states or a foreign country, allowing for disputes to be heard in federal court.

Citizens

Members of a state or nation who are legally recognized and entitled to its protection and to political rights.