When average costs of production drop as a result of a company learning how to produce items more efficiently, this is known as:
A) natural attrition.
B) scale economies.
C) scale diseconomies.
D) experience curve.
E) scope economies.

Question

Quizplus · Accepted Answer

The term for this phenomenon is the experience curve, in which a company's production costs decrease as it gains experience and expertise in producing a product.

When Average Costs of Production Drop as a Result of a Company