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The experience curve deals with competitive cost dynamics, and focuses on a firm's ability to deliver products at costs that are lower than those of the competitors. Although related to the economies of scale, the experience curve takes several other factors into account. These include economies of learning, specialisation and redesign of labour tasks, product and process improvements, methods and systems rationalisation, and know-how. In brief, the experience curve shows that the cost of doing a repetitive task decreases by a fixed percentage each time the total accumulated volume of production doubles...
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