An Innovation's Rate of Adoption Depends in Part on Compatibility

question 11

True/False

An innovation's rate of adoption depends in part on compatibility, or the degree to which the benefits of use are observable or describable to others.

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Definitions:

Average Total Costs

The total cost of production divided by the quantity of output produced, representing the cost per unit of output.

Total Variable Costs

The total of all costs that vary with the level of output, including expenses such as raw materials, labor, and utilities that increase as production expands.

Average Variable Cost

A firm’s total variable cost divided by output (the quantity of product produced).

Economies of Scale

The cost advantages that enterprises obtain due to the size, output, or scale of their operation, with costs per unit of output generally decreasing with increasing scale.