Discussion
Under an \( 85 \) per cent learning curve, the sixteenth unit costs what fraction of the first?
Answer: C
Correct answer: 0.522
Sixteen units is four doublings, so the curve factor is applied four times:
\[ \frac{C_{16}}{C_1} = 0.85^4 = 0.522 \]
Compare this with the previous item: an 80 per cent curve reached \( 0.512 \) in only three doublings, while an 85 per cent curve needs four to reach roughly the same point. A few percentage points on the learning curve slope compound into a large difference over a production run, which is why the assumed slope is one of the most contested numbers in a cost estimate.
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