Which of the Following Statements About Learning Curves Is Generally

question 32

Multiple Choice

Which of the following statements about learning curves is generally TRUE?

• A)Management can decide to achieve a certain rate of learning.
• B)Learning curves were first quantified by the U.S.Postal Service.
• C)Using the "doubling" model,a learning curve with a rate of learning of 70 percent means the tenth unit takes 70 percent of the time that the twentieth unit will take.
• D)Learning curves are recognition of the concept that the time a task takes usually decreases with experience.

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Definitions:

ATC

Average Total Cost; this refers to the total cost per unit of output incurred when producing goods or services.

Long-Run Equilibrium

A state in market conditions where all firms in a perfectly competitive industry earn zero economic profit, leading to the optimal distribution of resources in that industry.

MR

Stands for Marginal Revenue, which is the additional revenue gained from selling one more unit of a product or service.

MC

Short for Marginal Cost, it refers to the increase in total cost that arises from producing one additional unit of a good or service.