Which concept states that costs decrease as experience in a task increases?

The concept that states costs decrease as experience in a task increases is known as the Experience Curve. This principle suggests that the more a company produces a good or service, the more efficient it becomes at production, leading to lower per-unit costs over time.

As organizations repeat tasks, they typically improve their processes, become more familiar with their equipment, and learn to avoid errors. This accumulation of knowledge and skill typically translates into both improved productivity and reduced costs, which is the essence of the experience curve.

The learning curve, while related, specifically refers to how performance improves with practice, focusing more on the learning aspect of individual tasks rather than the broader organizational efficiencies observed over time. Other options like the Cost Reduction Principle and Efficiency Model lack the comprehensive nature of the experience curve. These concepts can also be related but do not encapsulate the idea as completely as the experience curve does. Overall, the experience curve highlights the relationship between accumulated experience in production and decreasing costs, making it the most appropriate answer.