Minor quibble: It’s a bit misleading to call B “experience curves”, since it is also about capital accumulation and shifts in labor allocation. Without any additional experience/learning, if demand for candy doubles, we could simply build a second candy factory that does the same thing as the first one, and hire the same number of workers for it.
Minor quibble: It’s a bit misleading to call B “experience curves”, since it is also about capital accumulation and shifts in labor allocation. Without any additional experience/learning, if demand for candy doubles, we could simply build a second candy factory that does the same thing as the first one, and hire the same number of workers for it.