An experience curve is a function that measures the decline in cost per unit in various business functions of the value chain as the amount of these activities increases.

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An experience curve is commonly used to measure the decline in cost per unit as the cumulative experience in a certain area of production or activity increases. It is used to analyze how the experience gained from repeated execution of a task or activity can lead to improved efficiency and cost reduction.

An Experience Curve Is a Function That Measures the Decline