A Job with a 90% Learning Curve Required 20 Hours

question 5

Multiple Choice

A job with a 90% learning curve required 20 hours for the initial unit.The fourth unit should require approximately how many hours?

• A)16.0
• B)16.2
• C)18.0
• D)20.0
• E)54.2

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, such as labor or capital.

Marginal Physical Product

The additional output that is produced by employing one more unit of an input, holding other inputs constant.

Substitution Effect

The economic understanding that as prices rise, or income decreases, consumers will replace more expensive items with less costly alternatives.

Output Effect

The impact on total production and economic output resulting from changes in price levels, influencing the quantity supplied or demanded.