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She Was Only Three but Already Had a Temper

question 17

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She was only three but already had a temper. Her favorite outburst was to stomp her foot. So her mother made her stomp and stomp and stomp until there was no more stomping left in her. This mother was using ________ to alter her daughter's behavior.


Definitions:

Diseconomies of Scale

A situation where an increase in production leads to higher average costs for firms, contrary to economies of scale.

ATC

Average Total Cost, the total cost divided by the quantity of output produced; it's a measure of per-unit production cost.

MC

Short for marginal cost, it represents the change in total cost that arises when the quantity produced is incremented by one unit.

Herfindahl Index

An economic measure of market concentration, calculated by summing the squares of the market shares of all competitors within an industry.

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