Gen-Supply reminds employees that its flagship product used to cost the company $154 to manufacture when the company launched ten years ago. Now, the same product costs just $58 to manufacture. This demonstrates the effects of
A) a global web.
B) dispersion linkage.
C) economies of scale.
D) the experience curve.
E) the efficiency frontier.

Question

Quizplus · Accepted Answer

The reduction in manufacturing costs over time is an example of the experience curve, which reflects how a company becomes more efficient and reduces costs as it gains experience in production.

Gen-Supply Reminds Employees That Its Flagship Product Used to Cost