Identify a true statement about the experience curve.
A)It is a graphic representation of the relationship between cost per unit and scale of production.
B)It is a tool that managers use to determine the learning capability of an employee.
C)It is simpler to calculate than a scale curve.
D)It is a representation of the relationship between cumulative volume and product cost.

Question

Quizplus · Accepted Answer

The experience curve is a representation of the relationship between cumulative volume and product cost. As more units are produced, the cost per unit decreases due to increased experience and efficiency in production processes.

Identify a True Statement About the Experience Curve