Economies of Scale and Learning Effects Both Increase the Efficiency

question 93

Multiple Choice

Economies of scale and learning effects both increase the efficiency of resource utilization, therefore increasing

• A)costs.
• B)capital.
• C)factor endowments.
• D)productivity.
• E)profitability

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Definitions:

Institutionalized Rationality

A concept that refers to the accepted logic and reasoning embedded within institutions, guiding their structures and processes.

Decision-making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Rational Model

A decision-making model that involves logical reasoning and systematic analysis to choose the best course of action.

Decision-making

The cognitive process of selecting a course of action from among multiple alternatives.