Economies of Scale Exist as a Firm Increases Its Size

question 296

Multiple Choice

Economies of scale exist as a firm increases its size in the long run because of all of the following except

• A)the firm can afford more sophisticated technology in production.
• B)labor and management can specialize even further in their tasks.
• C)as a larger input buyer, the firm can purchase inputs at a lower per unit cost.
• D)as a firm expands its production, its profit margin per-unit of output increases.

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Definitions:

Unconditioned Stimulus (UCS)

A stimulus that elicits a response from an organism prior to conditioning.

Pavlov

A Russian physiologist known for his work in classical conditioning, particularly his experiments with dogs and salivation.

Meat Powder

A substance used in Pavlov's experiments that, when presented to dogs, would cause them to salivate, demonstrating classical conditioning.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.