Suppose the first unit required 800 hours and the second unit required only 680. Which of the following times for the fourth unit would be consistent with a true learning curve scenario?
A)492
B)587
C)578
D)603
E)583

Question

Quizplus · Accepted Answer

The learning curve effect suggests that as production doubles, the time taken decreases at a consistent rate. The time for the second unit is 680 hours, which is 85% of the first unit's 800 hours. Applying this 85% rate to the third and fourth units, the fourth unit should take approximately 578 hours.

Suppose the First Unit Required 800 Hours and the Second