Learning Curve Analysis (Applied Solution Using Cumulative Average Time Model To Calaculate Costs)

Learning Curve or Experience Curve, applying (thru an example) the Cumulative Average Model (Wright's) Model to calculate the cost to required to produce additional units beyond current production quantity, using general equations & graphical analysis for (1) average time per unit, (2) total time (cost) based on cumulative average time learning model, developing the formulas & graphs for the learning model, calculates the unit cost, cumulative total cost & individual unit time based on quantity produced, learning curve or experience curve is based on the simple idea that the time required to perform a task decreases as a worker gains experience. The basic concept is that the time, or cost, of performing a task (e.g., producing a unit of output) decreases at a constant rate as cumulative output doubles, detailed graphical analysis by Allen Mursau