The First Unit Produced in a Process Takes 400 Hours

question 20

Multiple Choice

The first unit produced in a process takes 400 hours.As the number of units produced doubles,production time decreases by 20%.Using the arithmetic approach,calculate the production time for the 128th unit.

• A)84 hours
• B)256 hours
• C)105 hours
• D)72 hours

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Definitions:

Economic Efficiency

A situation where the distribution of resources is designed to enhance the production of goods and services maximally.

Demand Conditions

Factors that affect consumer desire for a product or service, including income levels, tastes, and price of substitutes.

Cost Conditions

The various expenses that firms face related to the production and sale of goods or services, including raw materials, labor, and overhead costs.

Maximum Profit

The highest possible financial gain that a business can achieve from its operations.