The Effect of Diminishing Marginal Returns Outweighing the Effect of Spreading

question 147

Multiple Choice

The effect of diminishing marginal returns outweighing the effect of spreading out the fixed costs is illustrated by the ________ average cost curve ________.

• A) long-run; decreasing
• B) long-run; increasing
• C) short-run; decreasing
• D) short-run; increasing

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Definitions:

Long-Term Storage

The phase of memory in which information is retained for extended periods, potentially for a lifetime.

Recency Effect

In free recall, the tendency to recall items at the end of the list more readily than those in the middle.

Memory Consolidation

The biological process through which memories are transformed from a transient and fragile status to a more permanent and robust state; according to most researchers, consolidation occurs over the course of several hours.

Primacy Effect

In free recall, the tendency to recall the first items on the list more readily than those in the middle.