As Production Moves Up, the Average Cost Per Unit Decreases

question 127

Multiple Choice

As production moves up, the average cost per unit decreases because ________.

• A) variable costs decrease
• B) of increasing diseconomies of scale
• C) fixed costs are spread over more units
• D) overhead costs decrease
• E) revenue increases

---

Definitions:

Ratio Schedules

Are partial reinforcement schedules in which behavior is reinforced as a function of how many times the behavior occurs—for example, rewarding someone every fifth time a desired behavior occurs.

Continuous Schedules

Work schedules or production plans that operate non-stop, typically 24 hours a day, often applied in industries that require constant operation.

Extinction

Also a term from reinforcement theory, extinction refers to the situation in which a behavior is followed by no consequences and eventually disappears.

Underpayment Inequity

A situation where a person perceives that they receive less compensation than they deserve, compared to others in similar positions.