The experience curve concept suggests that production costs tend to decrease as production increases regardless of where an industry is at in its life cycle.

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Quizplus · Accepted Answer

The experience curve concept does indeed suggest that production costs decrease as cumulative production increases, but it does not imply this happens regardless of the industry's life cycle stage. Factors such as market saturation, technological changes, and shifts in consumer demand can affect the applicability and impact of the experience curve at different stages of an industry's life cycle.

The Experience Curve Concept Suggests That Production Costs Tend to Decrease