The experience curve refers to the:
A) learning by doing technique.
B) company's overall experience in a particular industry.
C) systematic lowering of the cost structure and unit cost reductions.
D) diseconomies of scale caused by inexperienced workers.
E) increases in unit costs experienced over time.

Question

Quizplus · Accepted Answer

The experience curve is the systematic lowering of the cost structure and unit cost reductions that a company experiences over time as it gains more experience in producing a particular product or service. This is achieved through learning by doing, increased efficiency, and economies of scale.

The Experience Curve Refers to The