Which of the following is true of learning by doing?
A)It results from economies of scale.
B)It results from an increase in the price of inputs.
C)It results from the substitution of one input by a costlier input.
D)It results from a firm's cumulative output experience.

Question

Quizplus · Accepted Answer

Learning by doing refers to the improvement in production efficiency resulting from a firm's cumulative output experience. As a firm produces more and gains experience, it becomes more familiar with the production process, identifying and eliminating inefficiencies, and optimizing production methods. This leads to a reduction in unit costs and an improvement in productivity, which ultimately enhances the firm's competitiveness in the market. Therefore, option D is the correct answer.

Which of the Following Is True of Learning by Doing