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Learning Curves: Suppose you have a production technology that can be characterized by a learning curve. Every time you increase production by one unit, your costs decrease by $6. The first unit cost you $64 to produce.

If you receive a request for proposal (RFP) on a project for 4 units, what is your break-even price.?

 

Suppose that if you get the contract, you estimate that you can win another project for two more units. Now what is your break-even price for those two units?

Reference no: EM13994575

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