________ suggests that unit production costs decline by some fixed percent each time the total accumulated volume of production in units doubles.
A) The experience curve
B) The R&D mix
C) Technological competence
D) Economy of scale
E) Economy of scope

Question

Quizplus · Accepted Answer

The experience curve, also known as the learning curve, suggests that unit production costs decline by a fixed percentage (typically 10% to 30%) each time the total accumulated volume of production in units doubles. This is due to improvements in production efficiency, process optimization, and technological advancements over time. The experience curve is widely used in strategic planning and cost management to forecast future production costs and gain a competitive advantage.

________ Suggests That Unit Production Costs Decline by Some Fixed