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 false.

Question

Quizplus · Accepted Answer

A negative scale economies index indicates diseconomies of scale, which is true. However, a positive scale economies index occurs when the cost-output elasticity is less than one, not greater.

Use the Following Statements to Answer This Question: I