Suppose That Gigantic Company Is Increasing in Size

question 21

Multiple Choice

Suppose that Gigantic Company is increasing in size. As Gigantic Company grows, demand for inputs causes input prices to rise. It is likely that continued growth will result in

• A) economies of scale.
• B) reduced fixed costs.
• C) diseconomies of scale.
• D) increasing marginal returns.

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Definitions:

Secondary Reinforcers

Stimuli that become reinforcing through their association with primary reinforcers, such as praise, which is not innately reinforcing but becomes so through association with positive experiences.

Positive Events

Occurrences that lead to beneficial or uplifting outcomes for individuals or groups.

Aversive Events

Unpleasant or undesirable occurrences that an individual seeks to avoid or escape from.

Positive Reinforcement

A motivational strategy in which a positive stimulus is presented after a desired behavior, increasing the likelihood of future occurrences of that behavior.