A Company Negotiates a Price for Two Aircraft That Includes

question 103

Multiple Choice

A company negotiates a price for two aircraft that includes a reduction in labour on the second aircraft consistent with a 70% learning curve. Suppose the first aircraft took 100 hours. If the improvement rate changes to 20%, how will the total time to complete both aircraft change?

• A) no change
• B) -10 hours
• C) + 10 hours
• D) -50 hours
• E) + 50 hours

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