LeAnn's Telecommunication firm long-run cost curve is: where q is the number of units produced and A is the time in months that LeAnn's manager has spent on the job. What happens to production costs as the manager gains more experience on the job? Is this experience-effect common in production processes?

Increases in A will reduce the average cost of production for any quantity. This implies that as the manager gains job experience, LeAnn's cost of production will decrease. Suppose that LeAnn is producing 16 units and the manager has 1 month experience. LeAnn's costs are: If LeAnn's manager has 256 months of experience, LeAnn's costs are: This experience-effect of the manager is referred to in economics as a "learning-curve" effect. Many production processes exhibit a learning-curve effect. That is, more time spent performing an activity results in greater efficiency and smaller costs.