If Firm a Has a Learning Curve with 90% Learning

question 45

Multiple Choice

If firm A has a learning curve with 90% learning and firm B has a learning curve with 80% learning, then:

• A) Firm A has more experienced workers
• B) Firm B will be more cost efficient over time
• C) Firm A workers learn more quickly
• D) Firm B has less experienced workers

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Definitions:

Money Wages

The monetary compensation received by workers for their labor, not adjusted for inflation.

Recessionary Gap

The difference between the actual output of an economy and its potential output at full employment.

Self-correction

The process by which an economic variable adjusts back to its equilibrium or normal state after a disturbance, without external intervention.

Labor Surplus

A situation where the supply of labor exceeds the demand for labor, leading to unemployment or underemployment.