Which of the following is NOT a reason for average costs to fall according to the learning curve?
A) Workers accomplish tasks more quickly after doing the task a few times.
B) Managers schedule more efficiently over time.
C) Engineers determine more accurately what tolerances can be used.
D) Suppliers may become better able to produce the exact inputs the firm needs.
E) Competing firms leave the industry as the learning firm becomes more efficient.

Question

Quizplus · Accepted Answer

Competing firms leaving the industry does not directly affect the learning curve and therefore would not be a reason for average costs to fall. The other four options all relate to improvements in efficiency and cost reduction based on experience and learning.

Which of the Following Is NOT a Reason for Average