When individuals gain knowledge of the most efficient ways to perform particular tasks, they are saving costs through
A) location economies.
B) value creation effects.
C) experience curve effects.
D) learning effects.

Question

Quizplus · Accepted Answer

Learning effects refer to cost savings that come from learning by doing. Labor, for example, learns by repetition how to carry out a task, such as assembling airframes, most efficiently.

When Individuals Gain Knowledge of the Most Efficient Ways to Perform