This is often referred to as the learning curve in microeconomics.
I already mentioned (and linked to) the term “experience curve effects” which is synonymous. I didn’t claim this is unique to any specific industries, just that it was somewhat related to the point about the time-directionality of technology. I had written:
This sort of time-directionality is closely related to (though not the same as) the idea of experience curve effects: instead of looking at the quantity demanded or supplied per unit time in a given time period, it’s more important to consider the cumulative quantity produced and sold, and the economies of scale arise with respect to this cumulative quantity.
You write:
Whilst the decrease in average cost due to economies of scale is along the long run average cost curve, the decrease in average cost due to this learning is a shift in the long run average cost curve. This is also routine as one would imagine and a good example is a potato chip factory.
I already mentioned (and linked to) the term “experience curve effects” which is synonymous. I didn’t claim this is unique to any specific industries, just that it was somewhat related to the point about the time-directionality of technology. I had written:
You write:
Yes, I agree.