Steven Has an Urge to Buy a Dove Ice Cream

question 24

Multiple Choice

Steven has an urge to buy a Dove ice cream bar when he enters the neighborhood convenience store. What would be the best term to describe Steven's buying situation?

• A) unplanned buying
• B) impulse buying
• C) demand-enhanced buying
• D) planned buying

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing as scale increases.

Diseconomies of Scale

The phenomenon where production costs increase as a firm expands output, leading to reduced efficiency.

U-Shaped Long-Run Average Cost Curve

This describes the phenomenon where, over time, average costs first decrease with increased production, hit a minimum, and then increase with further production increase, forming a U-shape.

Minimum Cost

The lowest possible expense at which a particular set of goods or services can be produced or acquired.