Asked by Alayna Garcia on May 11, 2024
Verified
According to the law of experience,unit costs cannot be predicted,but they can be reduced.
Law Of Experience
Suggests that with increased experience or production, companies can reduce costs and improve efficiency, often referred to as the learning curve.
Unit Costs
The expenditure a business faces for the production, storage, and selling of an individual unit of a given product or service.
- Gain an insight into the notion and impacts of the experience curve on strategic business planning.
- Discern the link between unit costs, the amount of output, and experience curve implications.
Verified Answer
CC
conner cavanaughMay 17, 2024
Final Answer :
False
Explanation :
The law of experience, often referred to as the experience curve or learning curve, suggests that as a company gains experience in producing a product or service, its unit costs tend to decrease. This implies that with increased production and experience, companies can predict a trend of decreasing unit costs over time.
Learning Objectives
- Gain an insight into the notion and impacts of the experience curve on strategic business planning.
- Discern the link between unit costs, the amount of output, and experience curve implications.
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