Managers should not become complacent about efficiency-based cost advantages because
A) neither learning effects nor economics of scale go on forever.
B) the experience curve is likely to bottom out at some point.
C) cost advantages gained from experience effects can be made obsolete by the development of new technologies.
D) all of these.
E) none of these.

Question

Quizplus · Accepted Answer

All of the given options are reasons why managers should not become complacent about efficiency-based cost advantages. Learning effects and economics of scale may eventually reach a limit, and cost advantages gained through experience can be overtaken by the development of new technologies. Therefore, managers must continue to evaluate and innovate their strategies to remain competitive.

Managers Should Not Become Complacent About Efficiency-Based Cost Advantages Because