The fundamental premise underlying learning curve analysis is that
A) tasks can be easily learned in organizations.
B) organizations and people become better at their tasks as the tasks are repeated.
C) learning takes place when people in organizations change.
D) total labour costs decrease as the number of production units increases.
E) doubling output cuts labour requirements per unit in half.

Question

Quizplus · Accepted Answer

Learning curve analysis is based on the idea that with repetition of a task, organizations and individuals become more efficient and proficient at performing that task. As a result, the time and cost required to perform the task decreases over time. This can be represented graphically as a curve that shows the decreasing unit cost associated with an increasing number of units produced or tasks completed. The B option reflects this fundamental premise of learning curve analysis.

The Fundamental Premise Underlying Learning Curve Analysis Is That