The __________ occurs when unit cost drops as the quantity sold increases.
A) slotting allowance benefit
B) price fixing return
C) improvement value effect
D) experience curve effect
E) cumulative bundling benefit

Question

Quizplus · Accepted Answer

The experience curve effect is a phenomenon where unit cost decreases as the quantity produced or sold increases, due to the increased efficiency gained from experience in production or sales. This effect is also sometimes referred to as the learning curve effect.

The __________ Occurs When Unit Cost Drops as the Quantity