The Experience-Curve Concept

question 42

Multiple Choice

The experience-curve concept:

• A) helps a company realize both learning effects and diseconomies of scale.
• B) suggests that unit manufacturing costs increase by a certain amount each time output is increased.
• C) is very important in industries that mass-produce a standardized output.
• D) suggests that achieving low costs allows a firm to charge a premium price.
• E) is least likely to bottom out as long as the company does not stop production.

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Definitions:

Window Borders

The edges of a window on a computer's graphical user interface (GUI) that can often be resized by the user.

Database

An organized collection of structured information, or data, typically stored electronically in a computer system. A database is usually controlled by a database management system (DBMS).

Access

A term that can refer to the ability to obtain or retrieve information, or a Microsoft database software designed for managing and organizing data.

User Account

A personalized set of credentials and settings that grant a user access to a computer, network, or software application.