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Suppose Shyla Enjoys Playing Video Games

question 39

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Suppose Shyla enjoys playing video games. If we start paying her substantial amounts to play more frequently, she may come to enjoy it less. This phenomenon is known as the:


Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to scale of operation, with cost per unit of output generally decreasing with increasing scale.

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Positive Profits

The financial gain that occurs when total revenue exceeds total costs.

Long Run

A period in which all factors of production and costs are variable, allowing full adjustment to any change in market conditions.

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