________ occur when a firm gets more experienced at making a product and develops greater insight about how to do the task more efficiently.
A) Learning effects
B) Economies of scale
C) Work standards
D) Capacity expansions

Question

Quizplus · Accepted Answer

Learning effects occur when a firm gains experience and knowledge about how to perform a task more efficiently. This can lead to a reduction in costs and increased productivity. Economies of scale refer to the cost advantages that come from producing in large quantities, work standards are guidelines for how a task should be performed, and capacity expansions involve increasing a firm's production capabilities.

________ Occur When a Firm Gets More Experienced at Making