Company's Production Process Has an 85 Percent Learning Curve Rate

question 25

Multiple Choice

company's production process has an 85 percent learning curve rate.The process has produced 1,000 units to date.process refinement is estimated to allow a future learning curve rate for the identical product of 75 percent.However,the initial unit made using the new process will take the same amount of time as the very first unit produced using the old process.At what point,using the new process,will the production rate exceed the production rate achieved by the old process?

• A)By the 50^th unit
• B)By the 80^th unit
• C)By the 100^th unit
• D)By the 120^th unit
• E)By the 250^th unit

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Definitions:

Transitivity

In decision theory and economics, transitivity refers to the logical consistency in preference ordering such that if Option A is preferred over B, and B over C, then A should be preferred over C.

Indifference Map

A collection of indifference curves that represent a consumer’s preferences for various combinations of goods, illustrating how those preferences change with different bundles.

Marginal Rate

The marginal rate typically refers to the amount of change in one variable due to a unit change in another, commonly used in economics to describe rates of substitution or transformation.

Indifference Curve

A graph showing different combinations of two goods that give the consumer equal satisfaction and utility.