Cost Savings That Come from Learning by Doing Is Referred

question 90

Multiple Choice

Cost savings that come from learning by doing is referred to as:

• A)economies of scale.
• B)first-mover advantage.
• C)learning effects.
• D)factor endowments.
• E)late-mover advantage

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Definitions:

Diminishing Marginal Utility

The decrease in satisfaction or utility that a person derives from consuming each additional unit of a good or service.

Demand Curves

A graphical representation that shows the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at various prices.

Marginal Utility

The extra value or satisfaction garnered by a consumer with the acquisition of one more unit of a good or service.

Total Utility

The overall satisfaction or happiness received from consuming a certain amount of goods or services.