What Is One Way Rationalization Has Changed the Way We

question 52

Multiple Choice

What is one way rationalization has changed the way we think about goods and services?

• A) Things that used to be considered priceless are now given monetary value.
• B) Most goods must now be standardized and McDonaldized or they won't sell.
• C) Innovation and creativity are now frowned upon in favor of predictability.
• D) Services that were seen as public goods are now seen as profit centers.

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Definitions:

X-Inefficiency

A situation in which a firm fails to utilize its resources efficiently because of a lack of competitive pressure.

Average Total Costs

The total cost of production divided by the quantity produced, representing the per-unit cost of producing a good or service.

Economies Of Scale

Operational scale increases lead to cost efficiencies for businesses, prominently reflecting in reduced production costs per unit as the amount of output grows.

Diseconomies Of Scale

The situation when a firm’s average total cost of producing a product increases in the long run as the firm increases the size of its plant (and, hence, its output).