Question

1) Which statement(s) is(are) true?

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

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

A. Statement I is true.

B. Statement II is true.

C. Statements I and II are true.

D. Statements I and II are false.