Question

When Brite Fabrics first began operations, it took six hours to make a coat in the workroom. Today, that task takes three hours as more efficient sewing and patterning techniques have been introduced. This improvement in efficiency is an example of:________.
A. a geographic implication.
B. an efficiency frontier.
C. location economies.
D. learning effects.
E. diminishing returns.

Answer 1

Answer:

B. an efficiency frontier.

Explanation:

This improvement in efficiency is an example of an efficiency frontier.

An efficiency frontier gives a detailed investment options that an organization can adopt with regard to differentiation and cost, consequently, offering the highest expected return for a lowest level risk.

Answer 2

Answer: D. Learning effect.

Explanation: It initially took Brite fabric six working hours to produced a coat in the workroom, but now making a coat takes three working hours. The reduction in the number of hours it takes to make a coat, is due to introduction of "efficient sewing and patterning techniques". Brite fabric learned an efficient sewing and patterning techniques.

Learning effect in economics is the process by which through education there is increase in productivity and better results.