If unit cost drops by 20 percent when cumulative production


1. Show that if the unit cost to produce the xth unit of a product is given by ax-b, then doubling the cumulative cost to produce a unit always drops by the same fraction.

2. If unit cost drops by 20 percent, when cumulative production doubles, then costs follow an 80 percent learning curve. What value of b corresponds to an 80 percent learning curve?

Request for Solution File

Ask an Expert for Answer!!
Business Management: If unit cost drops by 20 percent when cumulative production
Reference No:- TGS02177021

Expected delivery within 24 Hours