Lenovo runs a plant that produces 3,000 tablets per day. As Lenovo gains experience in producing tablets, it learns how to do it better. Workers learn shortcuts and become more familiar with their equipment. With practice, the work
becomes better organized, and Lenovo finds better equipment and production processes. With higher volume, Lenovo becomes more efficient and gains economies of scale. As a result, the average cost tends to decrease with
accumulated production experience. This drop in the average cost with accumulated production experience is called
O a. Learning Elasticity Curve
O b. Learning Curve
O c. Long-term Production Elasticity Curve
O d. Experience Elasticity Curve
q9
There are several types of market. When products trade over a range of prices rather than a single market price, sellers try to develop differentiated offers for different customer segments, and sellers use branding, advertising, and
personal selling to set their offers apart, then this represents
O a. Pure competition
O b. Oligopolistic competition
O c. Pure monopoly
O d. Monopolistic competition