LEARNING CURVE

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June 5, 2020 at 12:17 pm #572907
draiells
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Hello Sir, hope you’re doing great and are safe.

Could you please elaborate this phrase and help me understand this point,

” The significance of the learning curve is that, by increasing its share of the market, a company can benefit from shop floor, managerial and technological ‘learning’ to achieve economies of scale.”

I do get what is meant by economies of scale but i just don’t understand this.

Thanks in advance.
June 5, 2020 at 4:27 pm #572920
John Moffat
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It is saying that because they will be producing more units they will get more efficient at it and therefore the time per unit will reduce.
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