Question

Which of the following is NOT a result of learning that helps a firm reduce its costs as its cumulative output increases?

1) Managers learn to schedule and organize the production process more effectively.
2) Workers become more skilled as they gain experience producing the firm's product.
3) Engineers develop better and more specialized tools to produce the firm's product.
4) The firm can negotiate with suppliers for lower input prices.

Answer 1

Option 4, negotiating with suppliers for lower input prices, is unrelated to the learning that helps a firm reduce costs from increased production, which is exemplified by economies of scale, specialization, and the division of labor.

Step-by-step explanation:

The choice that is NOT a result of learning that helps a firm reduce its costs as its cumulative output increases is option 4: The firm can negotiate with suppliers for lower input prices. This option is related to the firm's purchasing power and negotiation abilities rather than learning or efficiency improvements gained through experience or increased output, known as economies of scale.

Options 1, 2, and 3 directly result from the process of learning as a firm increases production:

• Managers optimize the production process.
• Workers refine their skills.
• Engineers develop more efficient tools.

These factors contribute to lowering the average cost per unit due to

specialization and the division of labor

, highlighting the role of experience and refinement of operations.