Which One of the Following Statements Is NOT a Typical

question 18

Multiple Choice

Which one of the following statements is NOT a typical assumption related to developing learning curves?

• A)The total direct labor hours needed to produce the first 100 units will be double the amount of hours needed to build the first 50 units.
• B)The direct labor needed per unit will decrease at a declining rate as cumulative production increases.
• C)The direct labor hours per unit will decrease according to an exponential curve as cumulative production increases.
• D)The direct labor needed to produce the 50th unit will always be more than the direct labor needed to produce the 51st unit.

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Definitions:

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor of production, such as labor or capital.

Marginal Revenue Product Schedule

A schedule or curve that shows the additional revenue produced by one more unit of an input, such as labor or capital.

Marginal Physical Product

The addition to total output due to the employment of one more unit of a factor, other factors held constant.

Marginal Output

The additional quantity of output that is produced as a result of using one more unit of a particular input, assuming all other factors of production remain constant.