Explain why learning reduces the effective marginal cost of production. If firms set prices in proportion to

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Explain why learning reduces the effective marginal cost of production. If firms set prices in proportion to their marginal costs, as suggested by the Economics Primer, how can learning firms ever hope to make a profit?

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Economics of Strategy

ISBN: 978-1118319185

6th edition

Authors: David Besanko, David Dranove, Mark Shanley, Scott Schaefer

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Question Posted: Sep 13, 2017 12:51 AM

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Explain why learning reduces the effective marginal cost of production. If firms set prices in proportion to

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The effect of learning allows firms to increase output at lower average costs ...View the full answer

Economics of Strategy

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