Question

If two firms produce very similar products at the same rate of output, and firm A is able to achieve lower per-unit costs than firm B by taking advantage of a new manufacturing technology, firm A is benefiting from

Answer 1

Firm A is benefiting from an experience-curve effect based on process innovation (option A)

What is an experience-curve effect?

The experience curve effect is a concept that was introduced by the Boston Consulting Group. The experience curve effect examines the relationship between the  experience a company has in producing a good and the efficiency of that production.

The experience curve effect postulates that the more experience a company has in manufacturing a product, the lower its cost of production.

Here are the options:

a. An experience-curve effect based on process innovation

b. Creative destruction

c. Value driver advantages based on product features

d. A learning curve effect based on output differential

To learn more about the experience-curve effect, please check: https://brainly.com/question/26322473

#SPJ1