Acme,Inc,Produces Widgets

question 56

Multiple Choice

Acme,Inc.,produces widgets.To manufacture a new type of widget,it took 73 hours for the first widget.Acme estimates it has an 88% learning rate.Using the logarithmic approach,calculate the time it will take to manufacture the 109th widget.

• A)31.24 hours
• B)34.86 hours
• C)30.81 hours
• D)32.90 hours

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Definitions:

External Costs

Costs that are not borne by the producers or consumers directly involved in a transaction but are imposed on other parties or the environment.

True Cost

Encompasses all the economic, environmental, and social costs associated with the production and consumption of a good or service.

Resource

Raw materials, labor, capital, and other inputs used in the production of goods and services.

External Benefits

Benefits of a good or service that are not captured by the market price and are received by third parties.