Learning Curve
Efficiency improvement as people gain experience doing task.
Formula
Learning Curve Effect: Unit Cost falls by a fixed % each time cumulative output doubles
Real World
Boeing found that as workers assembled more 747 aircraft, the labour hours required per plane fell dramatically — early planes took far longer to build than the thousandth unit off the same production line.
Exam Focus
In 'calculate' or 'analyse' questions, apply the curve to predict future unit costs — don't just define it.
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