The Fundamental Premise Underlying Learning Curve Analysis Is That

question 19

Multiple Choice

The fundamental premise underlying learning curve analysis is that:

• A) tasks can be easily learned in organizations.
• B) organizations and people become better at their tasks as the tasks are repeated.
• C) learning takes place when people in organizations change.
• D) total labor costs decrease as the number of production units increases.
• E) doubling output cuts labor requirements per unit in half.

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Definitions:

Marginal Productivity

The additional output derived from the use of one more unit of a variable input while other inputs remain constant.

Equilibrium Wage Rate

The equilibrium wage rate is the wage level at which the quantity of labor supplied by workers equals the quantity of labor demanded by employers in the market.

Marginal Productivity

The change in output resulting from employing one more unit of a particular input, keeping all other inputs constant.

Income Distribution

Refers to how a nation’s total GDP is distributed amongst its population.