One aspect of using a cost leadership strategy is that experience effects may lead to lower costs.Experience effects are achieved by
A) spreading out a given expense or investment over a greater volume.
B) hiring more experienced personnel.
C) repeating a process until a task becomes easier.
D) competing in an industry for a long time.

Question

Quizplus · Accepted Answer

One factor often central to an overall cost leadership strategy is the experience curve, which refers to how business learns to lower costs as it gains experience with production processes. With experience, unit costs of production decline as output increases in most industries.

One Aspect of Using a Cost Leadership Strategy Is That