Question: Nissan Company produces a particular type of commercial truck. Its chief engineer regresses the logarithm of the unit input cost of the Q ^th truck produced on the logarithm of Q. the result The result is given below.

ln C = 7.1 - .35 ln Q,

where C is the average cost (in dollars). Q is the quantity of trucks produced, In denotes the natural logarithm

1. What is the estimated input unit cost of the 200 ^th truck produced?
2. What is the estimated input cost of the 4001h truck produced?
3. By what percentage does unit input cost decline if output doubled from 200 to 400 trucks?
4. Write the above equation in its actual learning curve equation
5. Explain some of the applications of the learning curve.

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