Which term best describes the effect that occurs when production volume increases and unit costs decline?

A) competitive advantage
B) experience curve
C) virtuous circles
D) single sourcing

Experience Curve

A graphical representation that shows how increasing production experience reduces the cost per unit due to learning and efficiencies.

Virtuous Circles

A sequence of reciprocal events that enforce a positive outcome, often leading to a situation where each iteration improves the previous one.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.