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The learning curve is reverse 'J' shaped. Its shape indicates that the cost of production rises with rise in quantity produced but to an extent. After that point it stops increasing. It happens because the management or the production department learns to control the cost of production from past mistakes or experience or by reffering previous data. so, the learning to control the cost has named this curve as learning curve. when the cost stops rising and it stabilises then the curve becomes a straight line acordingly.....and it forms the shape of reverse 'J'.
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How does learning curve differ from experience curve?
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
Draw a production possibility curve and use it to explain scarcity choice and opportunity cost?
Production Possibility Curve this is an image of a ppf/ ppc
What is meant by realize experience curve?
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.
Types of opportunity cost using production possibility curve?
constant, decreasing and increasing
What happens to a supply curve if a tax on a good is repealed?
The supply curve of that good will increase or move to the right because the cost of production will have decreased.
How does learning curve differ from experience curve?
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
Concept and application on learning curve theory?
cost accounting concept and application on learning curve theory to be anwered
Opportunity cost curve?
Look up Production Possibility Frontier, it is the same thing as a Opportunity Cost Curve.
Draw a production possibility curve and use it to explain scarcity choice and opportunity cost?
Production Possibility Curve this is an image of a ppf/ ppc
What is meant by realize experience curve?
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.
Types of opportunity cost using production possibility curve?
constant, decreasing and increasing
What happens to a supply curve if a tax on a good is repealed?
The supply curve of that good will increase or move to the right because the cost of production will have decreased.
What is modern theory of cost of production?
the traditional theory explains cost curve u shape, but in modern theory says that cost curve L shape
What is an engineering cost curve and what is the relevance of an engineering cost curve in economics?
The engineering cost curve are derived with the help of engineering production function . The productionfunction specified the techniques of production, the embodiment of labor and capital etc. It means that each production method is divided into sub activities corresponding to the various physical and technical phases of production for the particular commodity. Engineering production method/function are characterised by a limited number of methods of production. The production iso-quants are kinked reflecting that the factor subsititutablity is limited. It means that the factor of production can be substituted is only possible at kinked of iso-quants.
Relationship between marginal cost and the supply curve for a purely competitive firm?
Marginal cost curve above the average variable cost curve, is the same as the short run supply curve. In perfect competition, MC=Price. It follows that production will be at that point. Hence the supply curve is the same as that part of the MC curve which is above AVC, where the firm can cover its variable cost....this is better than shutting down.
A popular model used to illustrate the concept of opportunity cost is?
The Production Possibilities frontier/curve
How can the production possibilities curve illustrate opportunity cost?
It shows weather the item you are talking about is increasing or decreasing.
