Learning curves were first used by aircraft manufacturers in the 1930s.Companies found a predictable relationship between increasing production output and cost per unit.What does it mean for a firm to have an 80% learning curve?

Question

Quizplus · Accepted Answer

An 80% learning curve indicates that every time the cumulative output is doubled, the cost per unit will decline by 20%. The steeper the curve, the better for driving costs down. A 70% learning curve is more aggressive in saving costs than an 80% curve.

Learning Curves Were First Used by Aircraft Manufacturers in the 1930s.Companies