Which of the Following Statements Is TRUE with Respect to Economies

question 99

Multiple Choice

Which of the following statements is TRUE with respect to economies of scale?
I. It is cheaper for 500 manufacturers to make 30,000 cars each.
II. It is cheaper for five manufacturers to make 3,000,000 cars each.
III. Bigger firms mean fewer firms.

• A) I only
• B) I and III only
• C) II and III only
• D) I, II, and III

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Definitions:

Extinction

In conditioning, the process by which a conditioned response diminishes and eventually disappears following repeated exposure to the conditioned stimulus without the unconditioned stimulus.

Spontaneous Recovery

Spontaneous recovery refers to the reappearance of a previously extinguished conditioned response after a period of non-exposure to the conditioned stimulus.

Conditioned Responses

Conditioned responses are the behaviors that result from the association between a previously neutral stimulus and a conditioned stimulus through conditioning.

Extinction

In psychology, the gradual weakening of a conditioned response by not reinforcing the conditioning stimulus.