The two phenomena that help explain the experience curve are
A) learning effects and economies of scale.
B) technology inputs and wealth transfer.
C) leveraging subsidiary and local responsiveness.
D) standardized manufacturing and global web.
E) efficiency frontier and location economies.

Question

Quizplus · Accepted Answer

Learning effects and economies of scale are the two phenomena that help explain the experience curve. Learning effects refer to the decrease in production costs as a result of increased experience in producing a good or service. Economies of scale refer to the decrease in production costs as a result of increased production volume.

The Two Phenomena That Help Explain the Experience Curve Are