The experience curve refers to systematic increases in production cost

QUESTION

The experience curve refers to systematic increases in production costs that have been observed to occur over the life of a product.

Indicate whether the statement is true or false.

ANSWER

FALSE
The experience curve refers to systematic reductions in production costs that have been observed to occur over the life of a product. A number of studies have observed that a product’s production costs decline by some quantity about each time cumulative output doubles.