Managers Should Not Become Complacent About Efficiency-Based Cost Advantages Because

question 1

Multiple Choice

Managers should not become complacent about efficiency-based cost advantages because:

• A)both learning effects and economics of scale go on forever.
• B)the experience curve is likely to bottom out at some point.
• C)cost advantages gained from experience effects are not affected by the development of new technologies.
• D)unit costs keep reducing as output increases. E)the experience curve steadily rises after a certain threshold is reached indicating an increase in unit costs.

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Definitions:

Unequivocal

Leaving no doubt; unambiguous or clear in expression or meaning.

Timely Basis

The act of completing or delivering something within an expected or appropriate time frame.

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, representing the earliest developmental stage of an embryo.

Graafian Oocyte

A mature egg cell that has completed its growth and is ready to be ovulated from an ovarian follicle.