Suppose the first unit of output required 900 labor hours, and the second unit required only 810. At this rate, how many more units must be produced before labor requirements are less than 700 hours?
A)2
B)4
C)6
D)8
E)10

Question

Quizplus · Accepted Answer

The labor hours required decrease by 10% for each additional unit produced (from 900 to 810 is a 10% decrease). To find when the labor hours will be less than 700, we can apply the 10% decrease repeatedly to the initial 900 hours:1st unit: 900 hours2nd unit: 810 hours (900 - 10% of 900)3rd unit: 729 hours (810 - 10% of 810)4th unit: 656.1 hours (729 - 10% of 729)5th unit: 590.49 hours (656.1 - 10% of 656.1)After the 4th unit, the labor hours required drop below 700, so 4 more units must be produced after the initial 2 to reach this point.

Suppose the First Unit of Output Required 900 Labor Hours