Final answer:
Yes, 'Learning by Doing' is a strategy employed by firms to increase returns and achieve economies of scale, allowing them to lower costs as output increases and to benefit from specialization in the value chain.
Step-by-step explanation:
The technique of Learning by Doing is indeed an approach employed by both emerging and established firms to increase returns and achieve economies of scale. When firms specialize and operate on a large scale, they can benefit from the reduction in the cost per unit as the quantity of output increases. This is the principle behind the operations of large warehouse stores like Costa or Walmart, which capitalize on economies of scale to offer lower prices to consumers.
Dynamic comparative advantage also acknowledges the benefits of intra-industry trade, where economies and firms can gain from specialization and learning from a split-up value chain. This does not go against the traditional theory of comparative advantage but extends its concept to consider the gains firms make through learning and economies of scale, leading to increased productivity and competitive advantage in certain industries or segments of the value chain.