Stella Inc. has recently introduced a new production method that will make the production of their medical devices more cost-effective. Which of the following will most likely be the result of this innovation? Jumps to a steeper learning curve. destabilizes a steeper learning curve. moves down the existing learning curve moves up the existing learning curve.

Moves Down the Existing Learning Curve.

Explanation:

With the introduction of a new production method, learning will become slower initially and gradually increase over time when employees become better acquainted with it. This falls under increasing returns learning curve.

The result of introducing a cost effective innovation is a jump to a steeper existing learning curve.

Explanation:

Learning curve is a Graphical representation of the common sense principle that the more one does something the better one gets at it.

Learning curve shows the rate of improvement in performing a task as a function of time, or the rate of change in average cost (in hours or dollars) as a function of cumulative output.

A steep learning curve is a good thing. If productivity increases due to cost effectiveness, the learning curve will become steep.