Economies of experience arise when efficient production requires specific skills that can only be acquired through extensive research and development in the industry.

Question

Quizplus · Accepted Answer

Economies of experience, often referred to as learning or experience curves, arise from the improvement in production efficiency and cost reduction as a company gains experience in manufacturing a product over time, not specifically from skills acquired through extensive research and development.

Economies of Experience Arise When Efficient Production Requires Specific Skills