Question

Meadows Mowers initially spent nine man-hours to assemble a lawnmower. But as the production doubled, the number of hours spent on assembling a mower reduced by 20 percent. This increase in productivity reduced the company's cost per unit. What is this phenomenon referred to as?

Answer 1

Answer:

Learning Curve Effect

Explanation:

The learning curve was first defined in 1885 by psychologist Hermann Ebbinghaus and is used as a means of measuring the quality of output and estimating costs.

A learning curve is a term that visually represents the cost-output relationship over a specified period of time, usually representing an employee's or worker's repetitive task.