The learning curve is the relationship between
A) returns to scale and cumulative costs.
B) marginal costs and current output.
C) marginal product of labor and current output.
D) average costs and cumulative output.

Question

Quizplus · Accepted Answer

The learning curve shows the relationship between average costs and cumulative output. As output increases, average costs decrease due to learning and experience gained through repetition and economies of scale. This concept is frequently applied in production processes, where the more a product is made, the more efficient the producer becomes.

The Learning Curve Is the Relationship Between