Which of the following statements is MOST appropriate with respect to a 70% learning curve?
A) There will be a 70% decrease in direct labor per unit each time the production volume doubles.
B) Each successive unit of production will take 70% of the direct labor of the previous unit.
C) There will be a 30% decrease in direct labor per unit each time production volume doubles.
D) Thirty percent of the production will be defective until full learning takes place.
E) None of these is true.

Question

Quizplus · Accepted Answer

A 70% learning curve implies that each time the production volume doubles, the direct labor per unit required to produce the subsequent units will decrease to 70% of what it was previously, which effectively means there is a 30% decrease in direct labor per unit, not a 70% decrease or that each unit takes 70% of the time of the previous one.

Which of the Following Statements Is MOST Appropriate with Respect