Let the average variable cost of production be $20 when 10 units are produced in the first year. In the second year, after the second 10 units have been produced, the average variable cost of production is $12. The slope of the experience curve for this firm is:
A)85%
B)60%
C)175%
D)12%

Question

Quizplus · Accepted Answer

The Answer of Let the average variable cost of production be $20 when 10 units are produced in the first year. In the second year, after the second 10 units have been produced, the average variable cost of production is $12. The slope of the experience curve for this firm is:
A)85%
B)60%
C)175%
D)12%

Let the Average Variable Cost of Production Be $20 When