When Brite Fabrics first began operations, it took six hours to make a coat in the workroom. Today, that task takes three hours as more efficient sewing and patterning techniques have been introduced. This improvement in efficiency is an example of
A) diminishing returns.
B) location economies.
C) a geographic implication.
D) learning effects.
E) an efficiency frontier.

Question

Quizplus · Accepted Answer

Learning effects refer to the improvements in efficiency and productivity that occur as a result of gaining experience and knowledge over time. In this case, Brite Fabrics has reduced the time to make a coat from six hours to three hours due to improved techniques, which is a classic example of learning effects.

When Brite Fabrics First Began Operations, It Took Six Hours