Cost of learning curve effect: The Economics of Learning Curves: Cost Reduction Strategies
- SJ Saturday
- January 12, 2023
- Bookkeeping
- 0 Comments
It is important to note that reduction in cost per unit due to the learning curve effect is different from economies of scale. Notice from Table 2 that the unit labor hours (column 2) andunit labor cost (column 4) decrease by 20% each time the cumulative output isdoubled. However, the cumulative total labor hours (column 3) and cumulativetotal labor cost …
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