Asked by Sailesh magar on Jul 11, 2024
Verified
Learning effects often result in _____ marginal costs.
A) decreasing
B) increasing
C) constant
D) random
Learning Effects
These are reductions in production costs that occur due to learning and improving over time, as processes become more efficient with experience.
Marginal Costs
The increase in total cost that arises from an extra unit of production.
- Recognize the role of learning effects on marginal costs.
Verified Answer
DL
Dipak LairenmayumJul 12, 2024
Final Answer :
A
Explanation :
Learning effects occur when repetitive production tasks result in an improvement in efficiency and productivity due to the accumulation of skills and experience. As a result, the marginal cost decreases over time as the production process becomes more streamlined and efficient.
Learning Objectives
- Recognize the role of learning effects on marginal costs.