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Bart developed a fear of flying when he was piloting a small plane through some severe turbulence. He has been seeing a therapist, and it appears that his fear response has been successfully extinguished. The therapist used a flight simulator to help Bart practice his piloting skills in a safe setting. However, the first time Bart stepped back into a real plane, his fear returned. This example illustrates the phenomenon known as
Capacity Allocation
The process of distributing resources and production capacity among various products, services, or activities to efficiently meet demand and optimize output.
Utilization
The extent to which a system, resource, or component is used relative to its total capacity, typically expressed as a percentage.
Higher Costs
Increased expenses or financial outlays in comparison to a baseline or expected level, affecting profitability.
Positive Externalities
Benefits that occur as a result of an economic activity which positively affect individuals or entities not directly involved in the activity.
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