Answer:
(D) I is true, and II is false
Explanation:
Increasing returns to scale means that during a production process, as input increases, output increases but by a larger proportion.
Economies of scale refers to the decrease in average cost per unit as a firm increases its output.
The increase in output brought about by increasing returns to scale causes cost per unit to decrease (which is economies of scale).
Therefore increasing returns to scale causes economies of scale.
