Learning by doing will result in
A) an upward sloping long-run average cost curve.
B) a larger long-run marginal cost than long-run average cost.
C) a rotation in the isocost curves.
D) lower long-run costs than short-run costs.

Question

Quizplus · Accepted Answer

Learning by doing refers to the process of improving productivity and efficiency through experience, practice, and trial-and-error. As a firm gains experience, it can increase its output while using the same amount of inputs, which leads to lower long-run costs than short-run costs. Therefore, the correct choice is D. The other options are not related to learning by doing.

Learning by Doing Will Result in