tention that, as an organization grows in size and experience, "it gets better at what it is doing and reduces costs and improves productivity."4
The basic assumption upon which the learning curve concept is based is that "total cost per unit will decline between 20%
1W. F. Glueck, Business Policy and Strategic Management, 5th ed. (New York: McGraw Hill Book Company, 1989), p. 228.
2H. L. Sisk, Management & Organization, 7th ed. (Cincinnati: South Western Publishing Co., 1990), p. 552.
3E. E. Nemmers, Business and Economics, 5th ed. (Totowa, New Jersey: Littlefield, Adams & Co., 1989), p. 261.
4B. Hedley, "A Fundamental Approach to Strategy Development," Long Range Planning, 12 (December 1976): 2 11.and 30% every time total production is doubled."5 This concept may be expressed as an algorithm in the analysis of a problem. A 20 percent cost reduction experience is referred to as an "80 percent learning curve," while a 30 percent cost reduction experience is referred to as a "70 percent lea
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