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Problem 1: Assume a firm wins a bid to produce four complex pieces of machinery. they predicted that the first unit would cost $80,000 and an 80% learning curve on each successive unit. What will be the impact on cost if the actual learning curve turns out to be 75%
a) The cost of the first unit will be reducedb) the Firm's actual costs will be lower than bidc) The firm's actual costs will be higher than bidd) There will be no impact on costs since the bid has already been placed
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