What relationship is there between learning curves and productivity measurement?

Learning curve models are helpful because they enable them to determine whether the output of your company's personnel and processes is commensurate with the resources invested in their improvement.

Average productivity is calculated as the ratio of total output units to total input units. The whole amount of income or profit divided by the total amount of input is another way to calculate average productivity.

Organizations' productivity varies throughout time. Individual workers' productivity will increase as they gain experience, and new hires can be trained more skillfully in the case of labor. The enhanced managerial knowledge of how to deploy productive resources more effectively also improves total production. These increases in productivity brought on by experience and better understanding are frequently referred to as learning by doing.

Overall, improvements brought about by increased productivity will lead to lower average costs. The learning curve describes the link between total production experience and average cost.