An economist estimated the learning curve for the production of Tesla vehicles to be: AC =...

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An economist estimated the learning curve for the production of Tesla vehicles to be: AC = 433,094*N -0.135 where AC = average production cost and N = cumulative production. Data used was annual. Calculate the resulting learning rate. From this, we can conclude that a)AC declines about 9 percent per year due to learning. b)there are economies of scale in production. c)there is no learning effect. d)AC declines about 13.5 percent per year due to learning An economist estimated the learning curve for the production of Tesla vehicles to be: AC = 433,094*N -0.135 where AC = average production cost and N = cumulative production. Data used was annual. Calculate the resulting learning rate. From this, we can conclude that a)AC declines about 9 percent per year due to learning. b)there are economies of scale in production. c)there is no learning effect. d)AC declines about 13.5 percent per year due to learning

Answer rating: 100% (QA)

To calculate the learning rate from the given learning curve equation we need to determine the expon... View the full answer