Learning by doing will result in
A)an upward sloping long-run average cost curve.
B)a long-run marginal cost that is larger than long-run average cost.
C)a rotation in the isocost curves.
D)long-run average costs that are lower than short-run average costs.

Question

Quizplus · Accepted Answer

Learning by doing refers to the process of gaining knowledge and expertise through practical experience. As a result of this process, firms can lower their average costs in the long run. This is because as they gain experience, they become more efficient and productive in their production processes, leading to lower costs. Therefore, the long-run average costs are typically lower than the short-run average costs.

Learning by Doing Will Result in