You Are a Consultant Specializing in Estimating the Costs After

question 1

Multiple Choice

You are a consultant specializing in estimating the costs after the employees learn how to do a job more efficiently by repetition. Your client can produce a product the first time at a cost of $2,500. If their 65 percent learning curve allows them to reduce their costs on each product, what is the total cost of producing 400 units of the new product?

• A) $100,000
• B) $78,900
• C) $58,600
• D) $45,765
• E) $37,850

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Definitions:

Labor Force

The total number of people employed and unemployed, who are actively looking for work and capable of working.

Marginal Benefit Curve

A graphical representation showing how the benefit (utility or satisfaction) to a consumer changes as consumption of a good or service increases.

Extra Benefit

The additional advantage or utility gained from consuming one more unit of a good or service.

Specific Product

A distinct good or service that is identifiable and distinct from others due to unique characteristics or features.