Question

Using the following learning curve, determine cost per unit at each 100 units between 100 and 500 units. Plot the values on a graph.               

C = 1000 Q^-0.25

^{*please show work and work out whatever is possible to do by hand instead of excel if possible. *}

Answer 1

for Q = 100, we will calculate ATC = 1000*(100)^(-1.25)

for Q = 150, we will calculate ATC = 1000*(150)^(-1.25)

for Q = 200, we will calculate ATC = 1000*(200)^(-1.25) and so on.....