Learning by doing:
A)is synonymous with economies of scale.
B)causes the average cost curve to shift down.
C)causes the firm's marginal cost curve to shift up and to the left.
D)occurs when output increases in greater proportion to the increase in inputs.

Question

Quizplus · Accepted Answer

Learning by doing leads to increased efficiency and productivity as workers and firms gain experience. This process can cause the average cost of production to decrease over time, hence shifting the average cost curve downward. It is not synonymous with economies of scale (A), does not cause the marginal cost curve to shift up and to the left (C), and does not specifically refer to output increasing in greater proportion to inputs (D), which is more closely related to economies of scale.

Learning by Doing