The Idea That the Manufacturing Costs Per Unit Decrease as the Number

question 114

Multiple Choice

The idea that the manufacturing costs per unit decrease as the number of units produced increases is known as _____.

• A) economy of scale
• B) venture capitalism
• C) Reed's law
• D) the first-mover advantage
• E) the network effect

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Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Stimulus-Response Association

The link established between a specific stimulus and a particular response through conditioning.

Extinction

In behavioral psychology, the gradual weakening and eventual disappearance of a learned response, typically as a result of the withdrawal of reinforcement.

Generalization

A concept in psychology and logic that involves the process of extracting common characteristics from specific examples and applying them to broader contexts.