A learning curve effect is a quantitative model of the commonsense observation that the unit cost of a new product decreases as more units of the product is made because of the learning process.

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This is true. The learning curve effect is a well-established concept in economics and production management, and it describes a phenomenon where the cost of producing a new product decreases as the cumulative volume of production increases due to learning and experience gains. This effect is often modeled mathematically as a power law, and it has important implications for production planning, pricing strategies, and overall profitability.

A Learning Curve Effect Is a Quantitative Model of the Commonsense