Consider the Following Statements When Answering This Question: I

question 149

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 determine 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:

Rounded

The process of adjusting a numerical value to a specified degree of precision, often to the nearest whole number or decimal place.

Accurate

The degree to which a measurement, calculation, or specification conforms to the correct value or a standard.

Cent

A unit of currency equal to one hundredth of various countries’ basic units, often symbolized by a small coin.

Accurate

The quality of being close to the true or correct value, without significant error or distortion.