________ is a notion that costs fall with cumulative production or delivery of a service and that,using the first few years of a product's life as a yardstick,the continued decline in costs is predictable.

Question

Quizplus · Accepted Answer

The notion described in the question is known as the experience curve, which posits that as companies produce or deliver more of a service, they gain experience that allows them to become more efficient and reduce costs. This is why costs tend to fall over time as cumulative production increases. Option A (benchmarking) refers to comparing a company's performance to that of its peers, while option C (economies of scale) refers to the cost advantages that companies can achieve by increasing their scale of production. Option D (reintermediation) refers to the reintroduction of intermediaries in a value chain that had previously been eliminated.

________ Is a Notion That Costs Fall with Cumulative Production