With experience, unit costs of production decline as _________ increases in most industries.
A)costs
B)volume
C)price
D)output

Question

Quizplus · Accepted Answer

With experience, unit costs of production decline as output increases in most industries. The experience curve, developed by the Boston Consulting Group in 1968, is a way of looking at efficiency gains that come with experience. For a range of products, as cumulative experience doubles, costs and labor hours needed to produce a unit of product decline by 10 to 30 percent.

With Experience, Unit Costs of Production Decline as _________ Increases