The concept that suggests that unit production costs decline by some fixed percent each time the total accumulated volume of production in units doubles is referred to as
A)the R & D mix.
B)the experience curve.
C)technological competence.
D)break-even analysis.
E)technology transfer.

Question

Quizplus · Accepted Answer

The concept of declining unit production costs as production volume increases is referred to as the experience curve. The experience curve suggests that each time the total production volume doubles, unit costs decline by a fixed percentage, usually between 10-30%. This concept is also known as the learning curve or the progress function.

The Concept That Suggests That Unit Production Costs Decline by Some