Question: If the first unit of a production run takes 1 hour and the firm is on an 90% learning curve, how long will unit 100

If the first unit of a production run takes 1 hour and the firm is on an 90% learning curve, how long will unit 100 take?

1. What are the advantages and disadvantages to IBM and SMT from this approach?
2. How does SMT’s proposed learning rate compare with that of other industries?
3. What are the limitations of the learning curve in this case? lo1

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