The Experience Curve Concept

question 6

Multiple Choice

The experience curve concept

• A) is a result of a combination of learning effects and economies of scale.
• B) is a result of a combination of learning effects and economies of scale and suggests that unit manufacturing costs decline by a certain amount each time output is doubled.
• C) suggests that achieving low costs allows a firm to charge a premium price.
• D) is most important for specialized or customized production.
• E) suggests that unit manufacturing costs decline by a certain amount each time output is doubled.

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Definitions:

Random

Lacking any definite plan or order or purpose; governed by or depending on chance.

Male and Female

Categories that describe an individual’s sex, based on biological differences, within a binary framework.

Probability

An indicator of how probable it is for an event to happen, represented by a number ranging from 0 to 1.

Births

The occurrence of bringing forth a new individual from a parent organism, initiating a new life.