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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Quizplus · Accepted Answer

The learning curve L = 10 + N^-1 decreases faster than L = 10 + N^-0.5 as N increases, because the exponent -1 results in a steeper decline compared to -0.5.

A Learning Curve May Be Expressed as a Relationship Between