You just need to answer this 1 question based on the “Managerial Economics A problem solving approach” textbook;
fourth edition by Froeb, McCann, Shor, Ward. The answers are based on this textbook chapter 7.
Problem 75
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, wat is your breakeven
price.?
Suppose that if you get the contract, you estimate that you can win another project for two more units. Now what is your
breakeven
price for those two units?
