When a ﬁrm grows organically, _____.
A) its cumulative output will contract
B) it will move to the ﬂat portion on the learning curve
C) it remains at a ﬁxed point on the learning curve
D) it can exploit the learning effect sooner than its rivals

Question

Quizplus · Accepted Answer

Organic growth allows a firm to expand at its own pace, leveraging its existing resources and capabilities. This gradual expansion enables the firm to learn and improve its processes, thus exploiting the learning effect sooner than rivals who might grow through acquisitions or mergers, which can be disruptive and slow down the learning process.

When a ﬁRm Grows Organically, _____