Which one of the following courses of actions would NOT be taken by a firm wanting to pursue a learning curve steeper than the industry average?
A) following an aggressive pricing policy
B) focusing on continuing cost reduction
C) keeping capacity equal to demand to control costs
D) focusing on productivity improvement
E) building on shared experience

Question

Quizplus · Accepted Answer

Keeping capacity equal to demand to control costs is not a course of action that would lead to a learning curve steeper than the industry average. Instead, a firm wanting to pursue a steeper learning curve would typically focus on actions such as aggressive pricing, continuing cost reduction, productivity improvement, and building on shared experience. By focusing on these actions, the firm can increase efficiency, improve processes, and gain experience that allows them to operate more effectively than their competitors. However, keeping capacity equal to demand does not necessarily lead to these benefits, and may not allow the firm to fully realize the advantages of a steeper learning curve.

Which One of the Following Courses of Actions Would NOT