The First Unit of a Product Took 50 Hours to Build

question 73

Multiple Choice

The first unit of a product took 50 hours to build, and the learning curve is 85%. How long will it take to make the 10th unit? (Use at least three decimals in the exponent if you use the logarithmic approach.)

• A) less than 24 hours
• B) from 25 to 30 hours
• C) from 30 to 35 hours
• D) from 35 to 40 hours
• E) more than 40 hours

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Definitions:

Comparative Advantage

The ability of an individual or country to produce a good or service at a lower opportunity cost than others.

Muffins

Baked goods that are usually sweet, made from batter or dough, and often enjoyed as a breakfast food or snack.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity (such as production of a specific good) more efficiently than another activity.

Compasses

Instruments used for navigation and orientation that show direction relative to the geographic cardinal directions.