ECON 705, Assignment 7 Due February 9, 2020 This assignment uses the Leaming Curve Excel tool.' See the ML 70x micro-lessons before starting. Your company is considering developing and building a new passenger plane. Average variable costs of production are expected fall as in Wright's learning curve model. You have the following information: Total research, development, testing, and evaluation (RDT&E) costs (fixed): $10 billion The following costs are variable costs (they don't include the S10 billion) Expected average cum Expected average cum S300 million S190 million From this information, report the learning rate and complete the following table (use millions of dollars as your units). Learning rate: Total RDT&E Average Fixed Costs Average Variable Cost Average Total Cost Marginal Cost* 1281 256 5121 1024) *The marginal cost, given the functional form of the learning curve, is (b+1)*(average variable cost). You will be reporting the values in the green shaded box in Moodle. In addition, answer the following questions: 10. If the price of each plane was $135 million, how many planes must be built and sold to cover total costs? 11. If the price of each plane was $135 million, how many planes must be built and sold to cover total variable costs? 12. If the price of each plane was $135 million, how many planes so that the marginal cost per plane falls below the price? You may either report the smallest total # of planes from above where MC