If Goodyear Tire Corporation experienced systematic reductions in the production costs of a particular product over the life of the product,they would be realizing ____________ effects.
A) managed production
B) forward advantage
C) experience curve
D) value chain
E) economies of scale

Question

Quizplus · Accepted Answer

The systematic reductions in the production costs over the life of the product are known as experience curve effects. As the production experience increases, the production costs decrease due to factors such as learning as well as efficiency improvements. This concept is also known as the learning curve, which is an important tool for managing and forecasting production costs. Therefore, the most suitable choice is C, experience curve.

If Goodyear Tire Corporation Experienced Systematic Reductions in the Production