Consider the Following Statements When Answering This Question: I

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.