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Hi John.
Please help on the mock exam qn on learning rate, Ive tried many times but still couldnt get the ans 🙁
A company is intending to produce a new prdt.
They have made ‘two test’ units-the first unit took 8hrs to make and the second took 6 hrs.
Whats the learning rate?Thank you!
Hi John,
Anther qns:
At a selling price $200,demand=100,000u p.a
Demand will chg by 10,000u for every $30 chge in selling price. Fixed costs = $60,000pa, variable cost=$8 per u. My workings as follow:
200=a-(30/10,000)(100,000u)
a=500
demand funct:200=500-(30/10,000)Q
MR=MC
500-2(30/10,000)Q=8
Q=84667 (optimal qty)
thus: optimal sp =500-(30/10,000)(84667u)
=$246 (ans:$254)Question 1:
If they make 2 units, then the average time per unit will be (8+6)/2 = 7 hours.
The average falls by a fixed % every time we double, so the learning rate here is 7/8 = 87.5%
(The free lecture on learning curves might help you – I actually go through an almost identical example to this one)
Second question:
Your fourth line from the end is:
500 – 2(30/10000)Q = 8
So:500 – 0.006Q = 8
0.006Q = 492
Q = 82,000Then it should work OK 🙂
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