The Learning Curve for a Product Is 70 Percent

question 37

Multiple Choice

The learning curve for a product is 70 percent. The first unit took 100 hours to complete. The manufacturer wants to determine how many hours the fifth unit will take by using the formula approach. What is the coefficient b for that calculation?

• A) −.097
• B) −.515
• C) −.322
• D) .80
• E) 1.90

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Definitions:

Utility Function

A mathematical representation describing how a consumer ranks different bundles of goods according to the level of satisfaction (utility) they provide.

Kumquats

Small, oval citrus fruits that are eaten whole, including the peel, known for their sweet rind and bitter pulp.

Quinces

A fruit similar in appearance to pears and apples, with a bright yellow skin, often used in jellies, jams, and other preserves because of its high pectin content.

Price Ratio

The proportional relationship between the prices of two different goods or services, often used in economic analyses.