A Company Is Introducing a New Product

question 33

Multiple Choice

A company is introducing a new product.The first unit took 1,000 hours to complete,and the fourth unit took 750 hours to complete.What is the rate of learning for this product?

• A) Less than 40 percent
• B) Greater than or equal to 40 percent but less than 60 percent
• C) Greater than or equal to 60 percent but less than 80 percent
• D) Greater than 80 percent

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Definitions:

Beers

A wide variety of alcoholic beverages made from barley, hops, water, and yeast through a brewing process.

Marginal Utility

The additional satisfaction or usefulness obtained from acquiring or consuming one more unit of a product or service.

Diminishing

A principle often seen where there is a decrease in the marginal (incremental) output of a production process as the amount of a single factor of production increases while others remain constant.

Donut

A fried dough confectionery or dessert food, usually sweet, and often served with a variety of toppings or fillings.