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A firm's average cost of production can decline over time because of economies of scale or...

A firm's average cost of production can decline over time because of economies of scale or (and) because there is a learning curve. What is the difference between these two effects?

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Answer #1

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1-   The benefits of the economies of scale means that the the costs of production are made to reduce with the greater production. With the greater production there is more efficient utilization of the resources , comparatively lesser amount of wastage is there and hence the average cost of production decreases due to the large scale production.

It is a quantitative phenomenon

2 - On the other hand due to the learning curve , subsequently the skills and the efficiency of the factors of production increases due to the continuous learning , adoption of the new skills and the technology in the production process and hence there are lesser chances of the inefficiencies in the production ad hence the average cost of production decreases due to the greater efficiency.

It is a qualitative phenomenon.

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