Economies of scale focus on the relationship between the cumulative volume of production and average unit costs, while the learning curve focuses on the relationship between the volume of production at a given time and average unit costs.

Question

Quizplus · Accepted Answer

The statement is incorrect as it reverses the focus of economies of scale and the learning curve. Economies of scale focus on the relationship between the volume of production at a given time and average unit costs, while the learning curve focuses on the relationship between the cumulative volume of production and average unit costs.

Economies of Scale Focus on the Relationship Between the Cumulative