Asked by KIARRA MORRIS on Sep 28, 2024

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Which of the following would most likely lower unit costs while increasing reliability and conformance quality?

A) network effects
B) economies of scope
C) diseconomies of scale
D) learning curve effects

Unit Costs

Unit costs refer to the cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Learning Curve Effects

The observed reduction in production costs and increase in efficiency as a company gains experience in manufacturing a product or providing a service.

Reliability

The degree to which an experiment, test, or measuring procedure yields the same results on repeated trials, indicating consistency and dependability.

  • Comprehend the association between scale economies, market penetration, and profit margins.
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MC
Madison Callaway2 days ago
Final Answer :
D
Explanation :
Learning curve effects refer to the phenomenon where unit costs decrease as cumulative production increases due to experience gained through repetition and refinement of processes. This results in higher reliability and conformance quality as workers become more skilled and efficient in their tasks. On the other hand, network effects (A) refer to the value a product or service gains as more users adopt it, economies of scope (B) refer to the cost savings achieved by producing a variety of products using the same resources, and diseconomies of scale (C) refer to the increase in unit costs as production increases beyond a certain point due to inefficiencies in coordination and communication. None of these options directly address the issue of improving quality and lowering costs through increased experience and expertise.