Because Gretchen Is Afraid of Contracting Infectious Diseases, She Compulsively

question 18

Multiple Choice

Because Gretchen is afraid of contracting infectious diseases, she compulsively avoids shaking people's hands or touching doorknobs. Research suggests that an especially effective treatment for her difficulty would involve

• A) client-centered therapy.
• B) psychodynamic therapy.
• C) cognitive therapy.
• D) behavior therapy.

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Average Total Cost

The total cost of production divided by the quantity of output produced; it includes all variable and fixed costs.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Long-run Average Total Costs

The average cost per unit of output where all inputs, including capital, are variable and the firm has adjusted all inputs to find the lowest average cost.