Which one of the following statements about learning curves is False?
A) The direct labor for the n+1st unit will always be less than the direct labor required for the nth unit.
B) The reduction in time will follow an exponential curve.
C) A benefit of learning curves is that they are unaffected by factors such as product complexity and the rate of capital additions.
D) Using industry averages for learning curves can be risky because the type of work and competitive niches can differ from firm to firm.

Question

Quizplus · Accepted Answer

This statement is false because learning curves can be affected by factors such as product complexity and the rate of capital additions. The benefits of learning curves are that they provide a framework for predicting future performance and can be used to set targets for improvement. Option A is true because as workers gain experience, they become more efficient, leading to reduced labor costs. Option B is often observed in practice, where time reduction tends to follow a logarithmic or power law curve. Option D is also true because industry averages do not account for differences in work environments and competitive niches.

Which One of the Following Statements About Learning Curves Is