This pattern of cost reductions with stepped-up (accumulated) production volumes is frequently referred to as "learning" or "experience" curve a good example of a positive feedback loop or of so-called "increasing returns". Higher wages and lower costs provide another example of a positive feedback: automobile (like other factory) workers could become car owners too, thus further enlarging the potential market for automobiles. Mass production and mass consumption thus go hand in hand, as do their negative impacts: increased work monotony and time pressure at the assembly line; increased congestion, and emissions from denser car traffic on the road.
Last edited: 22 July 2013
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