The First Unit of a Product Took 80 Work Days

question 56

Multiple Choice

The first unit of a product took 80 work days. The learning curve is estimated to be 90%. The time for the fifth unit will be about ________ work days and the time for the first five units will be about ________ work days.

• A) 63; 347
• B) 250; 51
• C) 65; 285
• D) 51; cannot be determined
• E) 65; cannot be determined

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Definitions:

Profit Maximization

A fundamental goal of businesses, which involves adjusting inputs and outputs to achieve the highest possible profit.

Market Price

The price of a commodity when sold in a competitive marketplace, determined by the supply and demand for the commodity.

Profit

The financial gain realized when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the business.

Short-Run

A period in which at least one factor of production is considered fixed, affecting the ability of businesses to change production levels.