It has been suggested that learning effects are important only during the start-up period of a new process and that they cease after two or three years. Any decline in the experience curve after such a point is due to
A) reduction in fixed costs.
B) higher depreciation costs.
C) economies of scale.
D) obsolescence.

Question

Quizplus · Accepted Answer

No matter how complex the task, learning effects typically disappear after a while. It has been suggested that they are important only during the startup period of a new process and that they cease after two or three years. Any decline in the experience curve after such a point is due to economies of scale.

It Has Been Suggested That Learning Effects Are Important Only