The First Unit of a Product Took 50 Hours to Build

question 86

Multiple Choice

The first unit of a product took 50 hours to build, and the learning curve is 85%. How long will it take to make the 20th unit? (Use at least three decimals in the exponent if you use the formula approach.)

• A) less than 25 hours
• B) from 25 to 30 hours
• C) from 30 to 35 hours
• D) from 35 to 40 hours
• E) more than 40 hours

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Definitions:

Oligopoly

A market structure characterized by a small number of firms whose control over the market is significant enough to influence prices and other market factors.

Cournot Duopoly

A market structure where two firms compete with each other by choosing quantities to produce independently.

Perfect Competition

A market structure characterized by many buyers and sellers, identical products, no barriers to entry or exit, and perfect information.

Monopolistic Competition

A market structure where many firms sell products that are similar but not identical, leading to competition based on price, quality, and marketing.