Question

which of the following is a true statement statement?

1) Decreasing returns to scale and diminishing returns to production are two ways stating the same thing.
2) Increasing returns to scale is a short-term concept and diminishing returns to production is a long-run concept.
3) Constant returns to scale is a short-run concept and decreasing returns to scale is a long-run concept.
4) None of the above.

Answer 1

1 is true, because both concepts define the ratio of production costs and product