Which one of the following statements is TRUE about the relationship between learning curves and competitive strategy?
A)Knowing where your process is on the learning curve will enable you to make frequent product modifications.
B)Firms that emphasize low cost in their competitive strategy strive to move down the learning curve by increasing volume.
C)Learning curves enable managers to project fixed manufacturing costs for future production quantities.
D)Projecting the impact of learning curves into the future is one effective way of reducing the impact of environmental uncertainty.

Question

Quizplus · Accepted Answer

Learning curves demonstrate that as output increases, costs decrease due to increased efficiency and experience. This is especially relevant for firms that focus on low cost as a competitive strategy, as they can use the learning curve to lower their costs and offer lower prices than competitors. Moving down the learning curve is achieved by increasing production volume. Statements A, C, and D are inaccurate in describing the relationship between learning curves and competitive strategy.

Which One of the Following Statements Is TRUE About the Relationship