When a Person Thinks of a Concept Such as "Bird

question 12

Multiple Choice

When a person thinks of a concept such as "bird," the person usually ________.

• A) constructs a mental list of key attributes of a bird
• B) has to identify the particular type of bird before a concept of a bird can be generated
• C) thinks of a prototype of a bird
• D) eliminates all of the attributes of being a nonbird

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Definitions:

Decreasing Returns To Scale

A situation where increasing the inputs proportionately results in less proportionate increases in output.

Profit-maximizing Output

The level of production at which a company achieves the highest possible profit, determined by the point where marginal revenue equals marginal cost.

Production Function

A mathematical representation of the relationship between inputs (like labor and capital) and the maximum output that can be produced with those inputs.

Profit-maximizing Quantity

The level of output at which a firm achieves the greatest profit, determined when marginal revenue equals marginal costs.