Question

A downward-sloping experience (or learning) curve is indicative of ________. Group of answer choices the low quality of a company's products the falling demand for a company's products slow and inadequate organizational learning the negative customer perception about a company's products the falling unit production cost of a company

Answer 1

Answer:

The answer in this case is the last option given in the answer choices or list which is the falling unit production cost of a company.

Explanation:

• An experience or learning curve is a graphical curve which shows the relationship between the per unit production cost of any good or service incurred by any firm or company and the overall volume or quantity of output produced by the firm or company.
• A downward sloping experience or learning curve implies a negative or inverse relationship between the per unit production cost of any firm or company and the total volume or quantity of output produced by it.
• When the experience or learning curve is downward sloping,it essentially implies that as the firm or company expands its overall production or output level,it gains increasing experience or learning on how to control and reduce the average cost of production and simultaneously increase production level which can generate higher sales revenue,thereby,increasing the profit level.This basically refers to economies of scale in Microeconomics and is indicative of long term productive efficiency which is desirable by any firm or company to ensure sustainable profitability.