Which statement(s) is (are) true? I. In the long-run, a firm can experience incr

Question

Which statement(s) is (are) true?

I. In the long-run, a firm can experience increasing, decreasing, or constant returns to scale.

II. If a firm doubles all of its inputs with the result that its output doubles, this firm has constant returns to scale.

III. Decreasing returns to scale are often due to coordination and communication problems that create operating inefficiencies.

A. Statements I and II are true.

B. Statement II is true.

C. Statements II and III are true.

D. Statements I, II, and III are true.

Explanation / Answer

STATEMENT II IS TRUE

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.