Experience curves express an inverse relationship between labor and the quantity produced.

Question

Quizplus · Accepted Answer

Experience curves express the relationship between efficiency improvements (cost reductions) and the cumulative volume of production, not specifically between labor and quantity produced. They suggest that the more a company produces, the lower the per-unit fixed costs because of increased efficiency, learning, and economies of scale.

Experience Curves Express an Inverse Relationship Between Labor and the Quantity