The Experience-Curve Concept

Multiple Choice

The experience-curve concept:

A) helps a company realize both learning effects and diseconomies of scale.
B) suggests that unit manufacturing costs increase by a certain amount each time output is increased.
C) is very important in industries that mass-produce a standardized output.
D) suggests that achieving low costs allows a firm to charge a premium price.
E) is least likely to bottom out as long as the company does not stop production.