When a Firm Does More of Something, It Gets Better

question 244

Multiple Choice

When a firm does more of something, it gets better at it. This learning-by-doing is

• A)a source of diseconomies of scale.
• B)a source of economies of scale.
• C)called the principle of natural progression.
• D)called "spreading the overhead."

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Definitions:

Behavioral Response

A behavioral response is an observable action or set of actions taken by an individual in reaction to an external or internal stimulus.

Emotional Response

The psychological reaction to a stimulus, characterized by feelings such as happiness, anger, fear, or sadness.

Hans Selye

A pioneering Hungarian-Canadian endocrinologist known for his research on the stress response and for introducing the concept of "General Adaptation Syndrome".

Physiological Arousal

A state of physical alertness or excitement, which can be triggered by emotions, thoughts, or external stimuli, affecting bodily functions.