At a certain output level,the per-unit cost incurred by a firm to manufacture a product is $5.Other factors remaining constant,what will be the new per-unit cost if the cumulative output is doubled,and the firm is able to achieve an 80 percent learning curve?

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Other factors remaining constant, if the cumulative output is doubled and the firm is able to achieve an 80 percent learning curve, the new per-unit cost will be $4. An 80 percent learning curve indicates that every time the cumulative output is doubled, the cost per unit will decline by 20 percent.

At a Certain Output Level,the Per-Unit Cost Incurred by a Firm