Learning Effects

question 74

Multiple Choice

Learning effects:

• A) result in unit manufacturing costs increasing by a certain amount each time output is increased.
• B) suggest that production costs increase because of increasing labor productivity.
• C) tend to be more significant when simple steps in an assembly process are performed over and over again.
• D) tend to be more significant when a technologically complex task is repeated.
• E) lead to diseconomies of scale.

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Definitions:

Control Of The Firm

The concept referring to who holds significant decision-making power in a company, usually the board of directors or shareholders.

Dual

Pertaining to or involving two parts, elements, or aspects.

Stock Classes

Different types of shares that a company can issue, each of which might have specific rights, privileges, or voting powers.

Capital Gains

The financial gain achieved when the selling price of an asset or investment surpasses its original buying price.