The First Unit of a Product Took 900 Hours to Build

question 11

Multiple Choice

The first unit of a product took 900 hours to build and the learning curve is 90%. How long will it take to make the first 3 units?

• A) less than or equal to 2,470 hours
• B) from 2,470 to 2,472 hours
• C) from 2,472 to 2,475 hours
• D) from 2,475 to 2,478 hours
• E) from 2,478 to 2,481 hours

---

Definitions:

Fair Market

The price at which an asset would exchange between a willing buyer and a willing seller, each having reasonable knowledge of all relevant facts and neither being compelled to buy or sell.

Par Common Stock

The nominal or face value assigned to common stock shares as stated in the corporate charter, unrelated to market value.

Stock Dividend

A distribution of additional shares of a company's stock to its shareholders instead of cash.

Market Price

Market price is the current price at which an asset or service can be bought or sold in the open market.