Managers should not become complacent about efficiency-based cost advantages because
A)neither learning effects nor economics of scale go on forever.
B)the experience curve is likely to bottom out at some point.
C)cost advantages gained from experience effects can be made obsolete by the development of new technologies.
D)all of these choices.
E)none of these choices

Question

Quizplus · Accepted Answer

All of these choices are valid reasons why managers should not become complacent about efficiency-based cost advantages. The learning effects and economics of scale will eventually reach their limits, the experience curve will bottom out, and new technologies can quickly make cost advantages obsolete. Therefore, managers must constantly strive to improve their efficiency and find new ways to reduce costs.

Managers Should Not Become Complacent About Efficiency-Based Cost Advantages Because