From 1970 to 1984,the productivity of the Lockeed Company increased as the company produced more airplanes.According to the text,Lockeed's experience can best be described as
A) Increasing returns to scale
B) Technological change
C) Learning-by-doing
D) Increasing marginal returns

Question

Quizplus · Accepted Answer

Lockheed's experience of increased productivity due to producing more airplanes is an example of learning-by-doing, where the company becomes more efficient and productive as it gains experience and expertise in producing more units of a product. This is not an example of increasing returns to scale, as that refers to increasing output with proportionately less increase in inputs, nor is it an example of technological change or increasing marginal returns.

From 1970 to 1984,the Productivity of the Lockeed Company Increased