The table presents information on a firm’s costs across a specified range of output in the short run and in the long run. Which conclusions can be drawn about the nature of production over this output range in the short run and in the long run?
- Ashort run: decreasing returns to scale; long run: diminishing returns
- Bshort run: economies of scale; long run: diminishing returns
- Cshort run: increasing returns; long run: decreasing returns to scale
- Dshort run: increasing returns; long run: economies of scale