The experience curve refers to the:
A)learning by doing technique.
B)company's overall experience in a particular industry.
C)systematic lowering of the cost structure and unit cost reductions.
D)diseconomies of scale caused by inexperienced workers.
E)increases in unit costs experienced over time.

Question

The experience curve refers to the:
A)learning by doing technique.
B)company's overall experience in a particular industry.
C)systematic lowering of the cost structure and unit cost reductions.
D)diseconomies of scale caused by inexperienced workers. 
E)increases in unit costs experienced over time.

Quizplus · Accepted Answer

The experience curve is a concept that suggests that as the volume of production increases, the cost of producing each unit decreases. This decrease in cost is due to the company's accumulated experience and learning over time, resulting in a more efficient manufacturing process, better utilization of resources, and lower unit costs. Therefore, the systematic lowering of the cost structure and unit cost reductions (choice C) is the best answer.

The Experience Curve Refers to The