Consider the following statements when answering this question.

I.A technology with increasing returns to scale will generate a long-run average cost curve that has economies of scale.

II.Diminishing returns determines the slope of the short-run marginal cost curve, whereas returns to scale determine the slope of the long-run marginal cost curve.

(My question is, I know that first statement is correct, but, I have no idea what the statement ll is talking about. Please provide detail explanation. Thanks!

A) I is true, and II is false.

B) I is false, and II is true.

C) Both I and II are true.

D) Both I and II are false.