An important type of nonlinear cost curve is the learning curve, and it:
A)tells how tightly the data points cluster around the regression line.
B)shows how the labor hours worked per unit decrease as the number of units produced increases.
C)is the percentage of variability in the dependent variable explained by an independent variable.
D)is an alternative measure of goodness of fit.

Question

Quizplus · Accepted Answer

The learning curve shows how the labor hours worked per unit decrease as the number of units produced increases. This means that as workers become more experienced and skilled, they can produce units in less time, resulting in a nonlinear cost curve.

An Important Type of Nonlinear Cost Curve Is the Learning