Which One of the Following Is Not Descriptive of the Experience

question 98

Multiple Choice

Which one of the following is not descriptive of the experience curve?

• A) It is very useful because it is consistent for all organizations within a particular industry.
• B) It is used to estimate the production cost of a product produced by newly introduced techniques or processes.
• C) The experience curve varies by industry and is based on many variables.
• D) The concept was first applied in the airframe industry.
• E) It shows that production costs decline by some fixed percentage as production in units doubles.

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Definitions:

Property Rights

Legal rights that delineate the ownership and utilization of resources, including the right to transfer, use, or exclude others from use.

Profit Maximization

The process by which a business seeks to achieve the greatest possible profit with the least possible cost and risk.

Industrial Waste

Waste produced by industrial activities, including chemicals and by-products that can be hazardous to the environment and human health.

Property Rights

Legal rights to possess, use, and dispose of assets freely. Property rights secure ownership and encourage investment by protecting and enforcing the legal ownership of resources.