The First Unit of a Product Took 900 Hours to Build

question 52

Multiple Choice

The first unit of a product took 900 hours to build and the learning curve is 90%.How long will it take to make the first 3 units? (Use Table E.3)

• A)less than or equal to 2,470 hours
• B)from 2,470 to 2,472 hours
• C)from 2,472 to 2,475 hours
• D)from 2,475 to 2,478 hours
• E)from 2,478 to 2,481 hours

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Definitions:

Average Fixed Cost

The fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced.

Average Total Cost

The total cost of production divided by the number of units produced, indicating the average cost per unit.

Average Revenue

The revenue generated per unit of output sold, calculated by dividing total revenue by the number of units sold.

Marginal Revenue

The additional income earned from selling one more unit of a product or service.