Learning curve theory

Question 1

Limitations

Answer 1

1) Learning curve doesnt continue forever, the hours and dollars saved reduces over time
2) The knowledge gained from on one product may not extend to another product unless shared experience exists between two products
3) Quantity discounts may create problems for costs and other percieved benefits
4) Inflation should be accounted for, this means that it should be expressed in constant dollars or else the benefits might get nutralised
5) Most effective for longterm horizons and short term benefits might not neccesarily come from learning curves
6) theres also external influences such as patents government regulations which might hinder the benefits
7) what if the production volume never changes, constant production value will have a limiting experince after few years
8) also depends on the availabilty of cost onformation.