A learning curve may be expressed as a relationship between the labor per unit (L)and the total number of units produced (N).Which of the following learning curves exhibits a faster reduction in cost of production due to learning,(1)L = 10 + N^-1 or (2)L = 10 + N^-0.5? A)Learning curve (1) B)Learning curve (2) C)Curves (1)and (2)exhibit the same rate. D)We cannot determine the rate of cost reduction without knowing the value of N.

Question

Quizplus · Accepted Answer

The learning curve L = 10 + N^-1 exhibits a faster reduction in cost of production because the exponent -1 is more negative than -0.5, indicating a steeper decline in labor per unit as the number of units produced increases.

A Learning Curve May Be Expressed as a Relationship Between