The Unit Improvement Factor for an 80 Percent Learning Curve

question 49

Multiple Choice

The unit improvement factor for an 80 percent learning curve at 100 units is 0.2271. The first and second timings of a person doing a job are 20 minutes and 16 minutes, respectively. What is the learning-adjusted time estimate for unit number 100?

• A) 20 minutes
• B) 16 minutes
• C) 2.271 minutes
• D) 4.542 minutes
• E) 0.800 minute

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Definitions:

Diminishing Marginal Utility

The decrease in satisfaction or usefulness obtained from each additional unit of consumption.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, due to the availability of more desirable substitutes.

Diminishing Marginal Utility

The principle that as a person consumes more of a good, the satisfaction gained from consuming an additional unit decreases.

Comparative Advantage

The ability to produce a good at a lower opportunity cost than others can produce it. Relative costs determine comparative advantage.