Acme,Inc,Produces Widgets

question 28

Multiple Choice

Acme,Inc.,produces widgets.To manufacture a new type of widget,it took 64 hours for the first widget.Acme estimates it has an 87% learning rate.Using the logarithmic approach,calculate the time it will take to manufacture the 62th widget.

• A)19.35 hours
• B)27.90 hours
• C)22.55 hours
• D)18.94 hours

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Definitions:

Perfectly Competitive

A perfectly competitive market is one where there are many buyers and sellers, homogeneous products, and no barriers to entry or exit, leading to efficient prices.

Maximize

To increase to the greatest possible amount or degree or to achieve the highest possible outcome in a given situation.

Total Benefits

Total benefits refer to the complete range of economic, social, and personal advantages gained from an action or an investment.

Consumer Surplus

The difference between the highest price a consumer is willing to pay and the actual price they pay in the market.