Which of the Following Terms Refers to the Unit Cost

question 31

Multiple Choice

Which of the following terms refers to the unit cost reductions associated with large sized outputs?

• A) Absolute advantage of production
• B) Economies of scale
• C) Constant marginal returns
• D) Diminishing marginal returns

---

Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that has become conditioned by being paired with an unconditioned stimulus.

Habituation

A psychological learning process wherein there is a decrease in response to a stimulus after being repeatedly exposed to it.

Acquisition Behavior

A behavioral psychology term referring to the process of learning new behaviors, often through conditioning.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response which is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.