Which model describes a decline in cumulative average time per unit as production increases?

The Cumulative Average-Time Learning Model accurately captures the trend of declining cumulative average time per unit as production increases. This model suggests that as a company produces more units of a specific product, the average time taken to produce each unit typically decreases. This occurs due to various factors such as the gaining of experience by the workforce, improved processes, and enhanced efficiencies in production.

By focusing on cumulative average time, this model illustrates how, over time, as more units are produced, the accumulated knowledge and learning lead to better performance and reduced costs. Consequently, this model is particularly valuable in understanding how production scales and optimizing processes for cost efficiency in manufacturing or service industries as they ramp up output.