A Firm That Is Able to Utilize More Efficiently Its

question 237

Multiple Choice

A firm that is able to utilize more efficiently its inputs as it increases production in the long run is an example of:

• A)economies of scale.
• B)diseconomies of scale.
• C)labor-intensive production.
• D)capital-intensive production.

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Definitions:

Absolute Threshold

The minimum intensity of a stimulus that can be detected by a person's senses at least 50% of the time.

Difference Threshold

The smallest amount by which a stimulus can be changed and the difference be detected half the time, also known as the just noticeable difference.

Weber's Law

A principle stating that the smallest noticeable difference in stimulus intensity is proportional to the intensity of the initial stimulus.

Chronic Obstructive Pulmonary Disease (COPD)

A group of lung diseases characterized by increasing breathlessness, frequent coughing, and sputum production.