A number of studies have observed that a product's production costs decline by some quantity about each time _____ doubles.

Question

Quizplus · Accepted Answer

The term "cumulative output" refers to the total amount of a product that has been produced over time. As cumulative output increases, a company gains more experience and expertise in producing the product, improving efficiency and reducing production costs. Studies have shown that these costs can decline by a certain percentage (usually around 20-30%) each time cumulative output doubles. Therefore, the best answer choice is B) cumulative output.

A Number of Studies Have Observed That a Product's Production