A number of studies have observed that a product's production costs decline by some quantity about each time
A) annual output is halved.
B) cumulative output doubles.
C) the workforce is trimmed by 75 percent.
D) fixed investment triples.
E) foreign domestic investment doubles.

Question

Quizplus · Accepted Answer

This phenomenon is known as the "learning curve" or "experience curve" effect, where production costs decrease as cumulative output increases, typically when cumulative output doubles.

A Number of Studies Have Observed That a Product's Production