An experience curve ________.
A) is a narrower application of the learning curve
B) measures the decline in cost per unit as production decreases for various value-chain functions such as marketing as production increases
C) only measures the decline in labor-hours per unit as units produced increases
D) measures the increase in cost per unit as productivity increases

Question

Quizplus · Accepted Answer

An experience curve measures the decline in cost per unit as production increases for various value-chain functions such as marketing, research and development, and production. It is a broader application of the learning curve, which only measures the decline in labor-hours per unit as units produced increases. Option A and D are incorrect, as they provide incorrect definitions of the experience curve.

An Experience Curve ________