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Production of the DeLorean car, made famous in the film Back to the Future, never got above 25,000 units during its lifetime. Automobile industry analysts estimate that production of this car needed to reach around300,000 units to achieve the __________, a decrease in unit cost as product volume increases.

A. slotting allowance benefit
B. price fixing return
C. improvement value effect
D. experience curve effect
E. cumulative bundling benefit

Respuesta :

segehood

Answer:

D. Experience Curve Effect

Explanation:

The experience curve effect refers to the school of thoughts that, the more experience an organization has in producing a particular product, the lower producing each product would cost. The experience curve is convex and downward sloping. It points that, it will get tons point where there would be reduction in the cost of production as the output volume increases. DeLorean car was said never to reach that level as it was estimated that they needed to produce atleast 300,000 units to achieve the experience curve effect.

jleanon

Answer:

D. experience curve effect

Explanation:

Production of the DeLorean car, made famous in the film Back to the Future, never got above 25,000 units during its lifetime. Automobile industry analysts estimate that production of this car needed to reach around300,000 units to achieve the experience curve effect ; refers to a drop in unit cost as the quantity sold increases.