Moving down the experience curve allows a firm to reduce its cost of creating value and increase its profitability.

Question

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Moving down the experience curve means gaining experience and expertise in producing goods or services, which allows a firm to reduce its costs of production and increase profitability. As a result, the firm is able to offer its products or services at lower prices or with better features, making it more competitive in the market. Thus, reducing costs through experience and learning is a critical element of a firm's profitability.

Moving Down the Experience Curve Allows a Firm to Reduce