Editing Learning curve (section)

=== Applications ===
The economic learning of productivity and efficiency generally follows the same kinds of experience curves and have interesting secondary effects. Efficiency and productivity improvement can be considered as whole organization or industry or economy learning processes, as well as for individuals. The general pattern is of first speeding up and then slowing down, as the practically achievable level of methodology improvement is reached. The effect of reducing local effort and resource use by learning improved methods often has the opposite latent effect on the next larger scale system, by facilitating its expansion, or [[economic growth]], as discussed in the [[Jevons paradox]] in the 1880s and updated in the [[Khazzoom-Brookes Postulate]] in the 1980s.

A comprehensive understanding of the application of learning curve on managerial economics would provide plenty of benefits on strategic level. People could predict the appropriate timing of the introductions for new products and offering competitive pricing decisions, deciding investment levels by stimulate innovations on products and the selection of organizational design structures.<ref>{{Citation |last1=Abernathy |first1=W. J. |title=Limits of the learning curve |date=1974 |journal=Harvard Business Review |volume=52 |issue=5 |pages=109–119 |last2=Wayne |first2=K.}}</ref>
Balachander and Srinivasan used to study a durable product and its pricing strategy on the principles of the learning curve. Based on the concepts that the growing experience in producing and selling a product would cause the decline of unit production cost, they found the potential best introductory price for this product.<ref>{{Citation |last1=Balacahnder |first1=S. |title=Modifying customer expectations of price decreases for a durable product |date=1998 |journal=Managerial Science |volume=44 |issue=6 |pages=776–786 |doi=10.1287/mnsc.44.6.776 |last2=Srinivasan |first2=K.}}</ref> As for the problems of [[Manufacturing process management|production management]] under the limitation of scarce resources, Liao <ref>{{Citation |last1=Liao |first1=W. M. |title=Effects of learning on resource allocation decisions |date=1979 |journal=Decision Sciences |volume=10 |issue=1 |pages=116–125 |doi=10.1111/j.1540-5915.1979.tb00011.x}}</ref> observed that without including the effects of the learning curve on labor hours and machines hours, people might make incorrect managerial decisions. Demeester and Qi <ref>{{Citation |last1=Demeester |first1=L. L. |title=Managing learning resources for consecutive product generations |date=2005 |url=https://ink.library.smu.edu.sg/lkcsb_research/1060 |journal=International Journal of Production Economics |volume=95 |issue=2 |pages=265–283 |doi=10.1016/j.ijpe.2004.01.005 |s2cid=154822091 |last2=Qi |first2=M.}}</ref> used the learning curve to study the transition between the old products' eliminating and new products' introduction. Their results indicated that the optimal switching time is determined by the characteristics of product and process, market factors, and the features of learning curve on this production. Konstantaras, Skouri, and Jaber <ref>{{Citation |last1=Konstantaras |first1=I. |title=Inventory models for imperfect quality items with shortages and learning in inspection |date=2012 |journal=Applied Mathematical Modelling |volume=36 |issue=11 |pages=5334–5343 |doi=10.1016/j.apm.2011.12.005 |last2=Skouri |first2=K. |last3=Jaber |first3=M. Y. |doi-access=free}}</ref> applied the learning curve on demand forecasting and the economic order quantity. They found that the buyers obey to a learning curve, and this result is useful for decision-making on [[Field inventory management|inventory management]].

Learning curves have been used to model [[Moore's law]] in the semiconductor industry.<ref>{{Cite journal |last=Mack |first=Chris A. |date=May 2011 |title=Fifty Years of Moore's Law |url=https://ieeexplore.ieee.org/document/5696765 |journal=IEEE Transactions on Semiconductor Manufacturing |volume=24 |issue=2 |pages=202–207 |doi=10.1109/TSM.2010.2096437 |issn=1558-2345|url-access=subscription }}</ref>

When wages are proportional to number of products made, workers may resist changing to a different post or having a new member on the team, since it would temporarily decrease productivity. Learning curves has been used to adjust for temporary dips so that workers are paid more for the same product while they are learning.<ref name=":0" />