EXPERIENCE
CURVE
EFFECTS
•
Experience curve:
unit costs decline as
overall production increases:
–
We figure out how to build it!
–
Big
experience curve
effects favor firms with
largest production volume
–
–
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http://www.netmba.com/strategy/experience-curve/
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http://www.computerworld.com/news/2001/story/0,11280,61762,00.html