Learning effects:
A) result in unit manufacturing costs increasing by a certain amount each time output is increased.
B) suggest that production costs increase because of increasing labor productivity.
C) are more significant when simple steps in an assembly process are performed over and over again.
D) are more significant when a technologically complex task is repeated.
E) lead to diseconomies of scale.

Question

Quizplus · Accepted Answer

Learning effects are most significant when a technologically complex task is repeated. As workers become more familiar with a complex task, they become more efficient and productive, leading to reductions in production costs.

Learning Effects