Answer to Question #76337 in Macroeconomics for Aman

Question

No labor actuals were captured for the first six units manufactured. It took 160 hours to manufacture thenext batch of 8 units (units 7-14).
During the next 6 months, an additional 60 units were built for which no labor data was collected. Thenext batch of 12 units (units 75-86) required 122hours to produce.
During the next 6 months, an additional 100 units
were produced for which no labor data was collected. It took 117 hours to produce the next batch of 15units (units 187-201).
Calculate the learning curve demonstrated by this organization.

Answer 1

A learning curve is a graphical representation of how an increase in learning (measured on the vertical axis) comes from greater experience (the horizontal axis); or how the more someone (or thing) does something, the better they get at it.
In our case we see, that every new portion of units is produces with fewer hours spent per unit, so the curve is downward-sloping.