Two Factors Favor an Expansionist Strategy in Capacity Decisions: Expansion

question 116

Short Answer

Two factors favor an expansionist strategy in capacity decisions: expansion may help achieve ______ of scale, and it may also ______ the learning rate.

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Definitions:

Spreading Attitude Effect

A liked or disliked person (or attitude object) may affect not only the evaluation of a second person directly associated but also others merely associated with the second person.

Automatic Activation

According to Fazio, attitudes that have a strong evaluative link to situational cues are more likely to automatically come to mind from memory.

Moderator Variable

A variable that qualifies an otherwise simple hypothesis with a view to improving its predictive power (e.g., A causes B, but only when C (the moderator) is present).

Improve Prediction

Enhancing the accuracy or effectiveness of forecasting future events or outcomes based on current data or trends.