In an Increasing-Cost Industry, Expansion of Output

question 19

Multiple Choice

In an increasing-cost industry, expansion of output:

• A) causes input prices to rise as demand for them grows.
• B) leaves input prices constant as input demand grows.
• C) causes economies of scale to occur.
• D) occurs under conditions of increasing returns to scale.
• E) occurs without diminishing marginal product.

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Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, encouraging the occurrence of desired behaviors.

Observational Learning

A learning process through which behaviors are acquired by watching and imitating others.

Primary Reinforcers

Stimuli that are naturally rewarding and satisfy basic biological needs, such as food, water, and warmth, and do not require learning to be effective.