Identify the truthfulness of the following statements.
I. Economies of Experience imply that Economies of Scale must exist.
II. Economies of Scale imply that Economies of Experience must exist.
A) Both I and II are true.
B) Both I and II are false.
C) I is true; II is false.
D) I is false; II is true.

Question

Identify the truthfulness of the following statements. 
I. Economies of Experience imply that Economies of Scale must exist.
II. Economies of Scale imply that Economies of Experience must exist.
A) Both I and II are true.
B) Both I and II are false.
C) I is true; II is false.
D) I is false; II is true.

Quizplus · Accepted Answer

Economies of Experience and Economies of Scale are distinct concepts. Economies of Experience refer to cost advantages gained through learning and improving efficiency over time, while Economies of Scale refer to cost advantages due to increased production levels. One does not necessarily imply the existence of the other.

Identify the Truthfulness of the Following Statements