The experience curve reveals that ________.
A) repetition in production has no visible impact on production costs
B) repetition in production enhances efficiency
C) the average cost of production remains the same with accumulated production experience
D) repetition in production adds to the costs and thereby increases the prices of outputs
E) the average cost of production increases with accumulated production experience

Question

Quizplus · Accepted Answer

The experience curve theory suggests that with cumulative experience in production, the overall cost of production decreases due to increased efficiency, learning, and economies of scale. Therefore, option B is the correct choice. Options A, C, D, and E are incorrect as they either contradict the theory or provide irrelevant information.

The Experience Curve Reveals That ________