Which of the Following Statements Is Correct If a Firm

Multiple Choice

Which of the following statements is correct if a firm builds a large plant and,at economic capacity output,its short-run average cost increases?

A) Decreasing returns to scale must be present.
B) Increasing returns to scale must be present.
C) Constant returns to scale must be present.
D) Decreasing,increasing and constant returns to scale are all possible.