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difference between leaning curve and experience curve

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difference between leaning curve and experience curve

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An experience curve is a graph that shows the relationship between cumulative production quantity and the production cost. It takes into account both variable and fixed costs.

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tax revenues

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Learning Curve

Learning Curve measures the relation between increases in per worker productivity (leading to decrease in per unit labor cost at fixed prices) associated with an improvement in labor skills from on the job experience. In other words, Learning Effect leads to fall in the cost of production per unit because with the increased involvement in the production process Labor and Managers become more and more familiar with the production process. This leads to improvement in their efficiency level.

So it is involved with one input-labor

Experience Curve

Production phenomenon where unit costs decline as volume increases. This result from a wide variety of factors including lower fixed costs per unit, an increase in skills associated with quantity production, and generally lower material costs. This is involved all the inputs.

Actually Learning curve impact is also part of Experience Curve. So in simple, Learning curve is a Narrow concept while Experience curve is a broader concept

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Management's use of an experience curve could help them avoid costly risks. However, repeated actions must be performed in this management style which could push production efforts back.

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