FARE 3310 Lecture Notes - Lecture 1: Thrice, 40 Minutes, Exponential Distribution

• School: University of Guelph
• Department: Food, Agricultural and Resource Economics
• Course: FARE 3310
• Professor: Getu Hailu

Document Summary

Rst reported in 1936 by theodore paul wright that the number of labour hours required to produce an airplane declined systematically as the cumulative number of airplanes produced increased 3. Learning objectives (cid:2) de ne a learning curve (cid:2) compute learning curve e ects with the logarithmic approach (cid:2) describe the strategic implications of learning curves. 3yelle, louis, e, (1979), the learning curve: historical review and. Comprehensive survey , decision sciences, 10:2, april, pp 302 - 328. The learning curve is based on a doubling of production: that is, when production doubles, the decrease in time per unit a ects the rate of the learning curve. Time required for the n-th unit, tn, is given by: Tn = t1 ln (4) where (cid:2) t1 = unit cost or unit time of the rst unit ; l = learning curve rate; n = number of times t is doubled.