Starting to make gismos at an initial production cost

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Manufacturer A is starting to make Gismos at an initial production cost of $95 for the first unit and has been lowering the cost with a learning rate of 79 percent. Manufacturer B also started this year with an initial production cost of $288/unit with a learning rate 46%. How many units does B have to make to tie or just beat the production cost/unit of A?

Reference no: EM13734262

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