Suppose the average total cost of producing semiconductors in a factory of a particular size declines over time as more semiconductors are produced. This drop in average total cost might best be explained by:
A) economies of scale.
B) economies of scope.
C) learning by doing.
D) diminishing marginal productivity.

Question

Quizplus · Accepted Answer

Learning by doing refers to the process where production efficiency improves as workers and managers gain experience over time, leading to a reduction in average total costs as more units are produced.

Suppose the Average Total Cost of Producing Semiconductors in a Factory