As the cumulative output in a firm increases, managers learn how to optimize the production process and improve workers' performance through repetition.This drives down the per-unit cost.Which of the following phenomena is best described here?

Question

Quizplus · Accepted Answer

As individuals and teams engage repeatedly in an activity, whether writing computer code, developing new medicines, or building submarines, they learn from their cumulative experience. Thus, learning by doing can also drive down cost.

As the Cumulative Output in a Firm Increases, Managers Learn