Letter to the Editor—The Progress-Curve Computer

Published Online:https://doi.org/10.1287/opre.7.1.128

In the aircraft industry, costs are generally expected to decrease as experience in production increases. To take account of this relation between the quantity produced and the cost of production, the theory of the progress curve was developed which states that within limits there tends to be a linear relation between the percentage increase in output and the percentage decrease in price. Thus costs may be represented by a straight line on a logarithmic grid.

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