Newplant Has the Most Experienced Production Employees and the Lowest

question 29

Multiple Choice

Newplant has the most experienced production employees and the lowest unit costs in its industry, indicating that it had benefited from

• A) experience curve efficiencies.
• B) learning effects.
• C) economies of scale.
• D) economies of scope.

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Definitions:

Buyer Requirement

The specific conditions or criteria that purchasers or markets demand from products or services.

Engine Oil

A lubricant used in internal combustion engines to reduce wear on moving parts, clean the engine from sludge, and cool the engine by carrying heat away from moving parts.

Filters

Tools or processes used to remove or separate unwanted parts from a signal or data.

Convenience

Refers to the ease with which a product or service can be used or obtained by consumers.