All else being equal, if a company moves down the experience curve faster than its rivals, it should realize a lower cost structure.

Question

Quizplus · Accepted Answer

Moving down the experience curve faster means that the company is becoming more efficient in its production processes, which should lead to lower costs. If all else remains equal, this should translate into a lower cost structure compared to rivals who are not moving down the experience curve as quickly.

All Else Being Equal, If a Company Moves Down the Experience