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The unit cost of the two-hundredth aircraft built under an 85 per cent learning curve, relative to the hundredth, is

  • A.42.5 per cent
  • B.Unchanged
  • C.85 per cent
  • D.170 per cent

Answer: C

Correct answer: 85 per cent

The two-hundredth unit is one doubling beyond the hundredth, and a learning curve is defined precisely on doublings of cumulative output. One doubling under an 85 per cent curve therefore costs 85 per cent of the previous point.

The distractor \( 42.5 \) halves that figure as if two effects applied. Note how the saving decelerates in absolute terms: the first hundred aircraft spanned more than six doublings, while the second hundred spans only one - which is why the cost curve flattens markedly as a programme matures.

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