Managers Should Not Become Complacent About Efficiency-Based Cost Advantages Because

question 64

Multiple Choice

Managers should not become complacent about efficiency-based cost advantages because

• A)neither learning effects nor economics of scale go on forever.
• B)the experience curve is likely to bottom out at some point.
• C)cost advantages gained from experience effects can be made obsolete by the development of new technologies.
• D)all of these choices.
• E)none of these choices

Grasp the relationship between the prices of complements and substitutes and their demands.

Understand market dynamics in response to changes in income and distinguish between normal and inferior goods.

Predict market outcomes based on technological improvements or changes in production costs.

Identify the effects of entry or exit of suppliers and changes in substitute goods on market equilibrium.

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Definitions:

Altruistic Behavior

Action taken to benefit others without expecting personal gains, driven by selfless concern for the well-being of others.

Reciprocity Norms

Social norms that dictate that we should treat others as they treat us, leading to mutual benefit or support.

Reciprocity Norm

A social expectation that people will respond to each other in kind, returning benefits for benefits and responding to harms with either retaliation or forgiveness.

Social-Responsibility Norm

An expectation that people will help those dependent upon them.