The Term "Economies of Scale" Means That

question 363

Multiple Choice

The term "economies of scale" means that:

• A) The largest producers are always the most efficient.
• B) The cost of a product goes down as a company produces larger numbers of it.
• C) The more one produces, the greater the profit.
• D) It is more efficient for an economy to have a large number of transactions.
• E) None of these is correct.

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Definitions:

Signal-detection Theory

A psychological theory that describes how individuals differentiate between informative signals and background noise in the environment.

Response Bias

A tendency for participants to respond to questions or tasks in a particular way that is not directly related to the content of the questions or tasks.

Sensory Capacity

The maximum amount of sensory information that an individual can process at any given time.

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli over time, allowing organisms to focus on changes in their environment.