Discussion
Under an \( 80 \) per cent learning curve, the cost of the eighth unit relative to the first is
Answer: B
Correct answer: 0.512
Eight units is three doublings of cumulative output - 1 to 2, 2 to 4, 4 to 8 - and each doubling applies the curve factor:
\[ \frac{C_8}{C_1} = 0.8^3 = 0.512 \]
So the eighth aircraft costs about half the first. The distractor \( 0.800 \) applies the factor once, and \( 0.240 \) applies it too often. The rapid early fall is characteristic: half the total saving of a long programme is realised in the first handful of doublings.
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