A Child Is Very Excited to Go to the Playground

question 96

Multiple Choice

A child is very excited to go to the playground.He is walking in circles,fidgeting with his hands,and showing other forms of agitation.These behaviors are almost certainly the result of:

• A) homeostasis
• B) arousal
• C) incentives
• D) goals

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Definitions:

Network Effects

The phenomenon whereby a product or service gains additional value as more people use it.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the average cost per unit of output decreases with increasing scale.

Monopolist

A sole provider of a particular good or service in a market, possessing the power to control prices and exclude competition.

Price Maker

A firm or entity that has significant control over the price of the goods or services it provides, due to lack of competition.