Unit Times for a Job Exhibit a Learning Effect

question 12

Multiple Choice

Unit times for a job exhibit a learning effect. If the second unit took 30 hours, and the fourth unit took 21 hours, roughly how many hours would you estimate the third unit took?

• A)29
• B)27
• C)25
• D)24
• E)21

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Definitions:

Perfectly Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and a homogenous product, leading to no single consumer or producer having market power.

Short Run

A period in economics where at least one factor of production is fixed, and firms can't adjust all inputs.

Cherry Industry

The market segment that deals with the cultivation, distribution, and sale of cherries.

Long-run Equilibrium

A state in which all factors of production are optimally allocated in the long term, resulting in the efficient operation of markets with no tendencies for change under constant conditions.