You Are a Consultant Called in to Estimate the Costs

question 34

Multiple Choice

You are a consultant called in to estimate the costs after the employees learn how to do a job more efficiently by repetition of new product. You find a company can produce a product the first time at a cost of $5,000. If their 90 percent learning curve allows them to reduce their costs on each unit, what is the total cost of producing 100 units of the new product?

• A) $500,000
• B) $390,000
• C) $290,700
• D) $250,687
• E) $250,000

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Definitions:

Facial Feedback

The hypothesis that facial expressions can influence emotional experiences.

Cultural Rules

Norms and expectations that govern behaviors within specific societies or groups, influencing how individuals act and interact.

Left Prefrontal Cortex

A region of the brain associated with higher cognitive processes such as decision making, social behavior, and personality expression.

Motivation to Approach

The drive or inclination to move towards or pursue positive outcomes or rewards.