... further beyond Y along AC1. But it may not shift to AC2, so the economies can exist without each other and economies of scale over time may not be accompanied by economies of learning. Intuitively the statement is also invalid because, for instance, a very capital intensive industry might gain a great deal of economy of scale through increasing output from maximising the use of its specialised machinery. The machinery may be quite easy to run and the process almost completely standardised so even over long periods of time, learning in terms of accumulation of human capital plays only a very small, if not no role at all, in lowering the costs. This may be an extreme case, but simple processes such as making aluminium cans or floppy disk production may carry such characteristics. In this essay I will further use commercial aircraft production as an example to demonstrate ...

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