In a typical experience curve,the time per unit for the first 100 to 200 units
A)Increases slowly
B)Increases rapidly
C)Decreases slowly
D)Decreases rapidly
E)Remains constant

Question

Quizplus · Accepted Answer

The typical experience curve shows that as the cumulative output doubles, the time per unit falls by a constant percentage. Initially, when the output is low i.e. for the first 100 to 200 units, there is a steep learning curve and the time per unit decreases rapidly. This is because workers and processes are becoming more efficient and experienced in producing the product. Therefore, the best choice would be D which says that the time per unit decreases rapidly.

In a Typical Experience Curve,the Time Per Unit for the First