Suppose that the experience curve for the production of a certain type of semi-conductor has a slope

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Suppose that the experience curve for the production of a certain type of semi-conductor has a slope of 80 percent. Suppose over a five-year period, cumulative production experience increases by a factor of 8. Input prices over this period did not change. At the beginning of the period, average variable cost was $10 per unit. This cost is independent of the level of output at any particular point in time. What is your best estimate of average variable cost at the end of this five-year period?
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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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