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

Question

Quizplus · Accepted Answer

The scale economies index is positive if the cost-output elasticity is less than one, indicating economies of scale. A negative index indicates diseconomies of scale, so II is true and I is false.

Use the Following Statements to Answer This Question