At a certain output level,the per-unit cost incurred by a firm to manufacture a product was $60.Once the cumulative output doubled,the cost per unit reduced to $54.All other factors remaining constant,the firm has been able to achieve a(n)

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A 90 percent learning curve indicates that per-unit cost drops 10 percent every time output is doubled. In this case, the per-unit cost is reduced by 10 percent of $60; therefore, the new per-unit cost is $54.

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