Assume a Firm Is Using 10 Units of Capital and 10

question 27

Multiple Choice

Assume a firm is using 10 units of capital and 10 units of labour to produce 10 widgets per hour.By doubling both inputs the result is a doubling of output.This firm is experiencing

• A)constant returns to scale.
• B)economies of scale.
• C)diseconomies of scale.
• D)increasing costs.
• E)decreasing returns.

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Definitions:

Shaping Successive Approximations

A behavior modification technique that reinforces behaviors progressively closer to the desired behavior, used effectively in both humans and animals.

Skinner Box

An experimental apparatus developed by B.F. Skinner for studying behavioral conditioning in animals, particularly with reinforcements.

Shaping

A method of training or teaching by which successive approximations toward a desired behavior are reinforced.

Reinforcer

Any stimulus that increases the likelihood that a preceding behavior will occur again.