Assume That It Takes 100 Hours to Produce the First

question 12

Multiple Choice

Assume that it takes 100 hours to produce the first unit of a product,and the learning rate for this production process is 80%.Using the arithmetic approach,determine the labor hours required to produce the 4th unit.

• A)100 hours
• B)80 hours
• C)64 hours
• D)52 hours

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Definitions:

Wage Rate

The amount of money paid to an employee per unit of time or for each unit of output produced.

Demand Schedule

A table or graph that shows the quantity of a good or service that consumers wish to buy at each price level.

Marginal Product

The additional output that is generated by employing one more unit of a specific factor of production, keeping other inputs constant.

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production, holding other factors constant.