Spectators Consume Other People's Content by Reading Blogs and Watching

question 18

True/False

Spectators consume other people's content by reading blogs and watching videos.

Understand the impact of scale changes on total, average, and marginal costs.

Recognize conditions for long-run equilibrium in constant cost industries.

Analyze the implications of long-run average cost curves on industry structure and firm size.

Understand the economic reasoning behind U-shaped long-run average cost curves.

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Definitions:

Propinquity

The phenomenon wherein people are more likely to form friendships or relationships with those who are geographically close or frequently encountered.

Positively Correlated

A relationship between two variables in which both variables move in the same direction.

Proximity

The physical closeness between people which can influence attraction and relationship formation.

Fundamental Attribution Error

The tendency to give more attention to dispositional factors than is appropriate for a situation.