Indigo Inc.experienced a drop in the price of each product as the overall volume of production increased.This relationship or method caused an increase in profits accrued by the company.This is an example of the _____.
A)law of motion
B)law of experience
C)law of value
D)law of knowledge

Question

Quizplus · Accepted Answer

The scenario described is an example of the "law of experience," also known as the "experience curve" effect, which suggests that as a company gains more experience in producing a product, the unit cost of the product decreases, often leading to increased profits. This is because increased production volume typically leads to operational efficiencies and cost savings.