"Learning by doing" results in decreased average costs of production and is illustrated by a downward shift of the firm's long-run average cost curve.

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Quizplus · Accepted Answer

This statement is true. "Learning by doing" refers to the concept that as a firm produces more units of a particular product or service, its employees become more experienced and efficient in their tasks, leading to lower costs of production. This results in a downward shift of the firm's long-run average cost curve, reflecting lower average costs of production at each level of output.

"Learning by Doing" Results in Decreased Average Costs of Production