To a strategist, what does the logic of the experience curve suggest?
A)The company with the highest volume in an industry will also be the lowest-cost producer.
B)The company with the steepest learning and experience curves will also be the lowest-cost producer.
C)The company with the lowest market share in an industry will also be the highest-cost producer.
D)The company spending the most on advertising in an industry will also be the lowest-cost producer.

Question

Quizplus · Accepted Answer

The experience curve suggests that as a company produces more, it gains experience and becomes more efficient, leading to lower costs. Therefore, the company with the highest volume is likely to be the lowest-cost producer.

To a Strategist, What Does the Logic of the Experience