Omega recently found that its flagship product had cost the company $129 to manufacture when the company launched it ten years ago.Now,the same product cost just $72 to manufacture.Which of the following terms best represents the systematic reductions in production costs that Omega has achieved over the ten-year life of its flagship product?

Question

Quizplus · Accepted Answer

The term that best represents the systematic reductions in production costs that Omega has achieved over the ten-year life of its flagship product is the experience curve. This term refers to the idea that as companies produce more of a product, they gain experience and become more efficient, which leads to lower costs. Omega's ability to manufacture its flagship product at a lower cost over time is a clear example of the experience curve.

Omega Recently Found That Its Flagship Product Had Cost the Company