The First Unit of a Product Took 400 Hours to Complete

question 66

Multiple Choice

The first unit of a product took 400 hours to complete. If an 80% learning curve is expected, how long will the 18^th unit take to complete?

• A) 157.6 hours
• B) 163.8 hours
• C) 400.0 hours
• D) 3886.4 hours
• E) 7200.0 hours

---

Definitions:

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product.

Subsidizing Consumers

Directing government funds to reduce the price paid by consumers for goods or services, aiming to encourage consumption or support specific sectors.

Efficiency Loss

Reductions in combined consumer and producer surplus caused by an underallocation or overallocation of resources to the production of a good or service. Also called deadweight loss.