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A learning curve may be expressed as a relationship between the labor per unit (L) and the ...

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A learning curve may be expressed as a relationship between the labor per unit (L) and the ...

A learning curve may be expressed as a relationship between the labor per unit (L) and the cumulative 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.

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Microeconomics

Edition: 8^th

Author: Pindyck

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nakungth Author

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Smart ... Thanks!

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