As Al's Radiator Company Adds Workers While Keeping the Same

question 182

Multiple Choice

As Al's Radiator Company adds workers while keeping the same amount of machinery,some workers may be underutilized because they have little work to do while waiting in line to use the machinery.When this occurs,Al's Radiator Company encounters

• A) economies of scale.
• B) diseconomies of scale.
• C) increasing marginal returns.
• D) diminishing marginal returns.

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Definitions:

Libido

A psychological term used to describe sexual desire or drive.

Psychosexual Development

A Freudian concept outlining how personality development takes place through stages during childhood, centered around the gratification of libidinal urges.

Fixation

An obsessive focus or attachment to a person, concept, or object, often stemming from unresolved developmental conflicts.

Striving for Superiority

A concept introduced by Alfred Adler, suggesting that a primary motivation for human behavior is the drive to overcome feelings of inferiority.