Stella Inc. has recently introduced a new production method that will make the production of their medical devices more cost-effective. Which of the following will most likely be the result of this innovation? Jumps to a steeper learning curve. destabilizes a steeper learning curve. moves down the existing learning curve moves up the existing learning curve.

Question

Yosef Mclaughlin

Business

26 April, 23:55

Stella Inc. has recently introduced a new production method that will make the production of their medical devices more cost-effective. Which of the following will most likely be the result of this innovation? Jumps to a steeper learning curve. destabilizes a steeper learning curve. moves down the existing learning curve moves up the existing learning curve.

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Answers (2)

Know the Answer?

Derick Barton · Answer 1

The result of introducing a cost effective innovation is a jump to a steeper existing learning curve.

Explanation:

Learning curve is a Graphical representation of the common sense principle that the more one does something the better one gets at it.

Learning curve shows the rate of improvement in performing a task as a function of time, or the rate of change in average cost (in hours or dollars) as a function of cumulative output.

A steep learning curve is a good thing. If productivity increases due to cost effectiveness, the learning curve will become steep.

Dorian Carter · Answer 2

Moves Down the Existing Learning Curve.

Explanation:

With the introduction of a new production method, learning will become slower initially and gradually increase over time when employees become better acquainted with it. This falls under increasing returns learning curve.