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Economics

Q. Assume you have a production technology which can be characterized by a learning curve. Every time you increase production by one unit, your costs decrease by $6. The 1st unit costs you $64 to produce.

a) If you receive a request for proposal (RFP) on a project for four units, illustrate what is your break-even price?

b) Assume which if you get the contract, you estimate which you can win another project for two more units. Now illustrate what is your break-even price for those two units?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9219574

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