Learning-by-doing example: During World War II, the Liberty ship program saw unit costs decline:
A) about 50% a year.
B) about 12-24% with each doubling of output.
C) about 25-50% with each doubling of output.
D) none of the above.

Question

Quizplus · Accepted Answer

The learning-by-doing experience during the Liberty ship program followed the "learning curve" model, where unit costs decreased by about 12-24% with each doubling of output. This was due to the increased efficiency and experience gained by the workers involved in the production process.

Learning-By-Doing Example: During World War II, the Liberty Ship Program