In Troix City, the Learning Rate Is Based on a Tripling

question 40

Multiple Choice

In Troix City, the learning rate is based on a tripling of output instead of the traditional doubling. The first unit of a long production run was produced in 25 hours. The process has an estimated learning rate of 80 percent. How long will the 9th unit take to produce?

• A) 22 hours
• B) 20 hours
• C) 18 hours
• D) 16 hours

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded, often considered the market-clearing price.

Equilibrium Quantity

The quantity of goods supplied is equal to the quantity demanded at the market equilibrium price.

Normal Good

A good for which demand increases when consumer income rises, and falls when consumer income decreases, all other factors being constant.

Demand Curve

A graphical representation that shows the relationship between the price of a good and the quantity demanded by consumers.