Under learning curve theory, with a learning rate of 70 percent, the:
A) time to produce the second unit will be 70 percent less than the time to produce the first unit.
B) time to produce the second unit will be 30 percent less than the time to produce the first unit.
C) cumulative average time per unit after producing the first 100 units will be 70 percent less than the average time per unit of the first 50 units.
D) average time per unit will be cut in half for every 70 units.

Question

Quizplus · Accepted Answer

Learning curve theory states that as the number of units produced increases, the time and cost per unit decrease at a consistent rate known as the learning rate. A learning rate of 70 percent means that the time required to produce the second unit will be 30 percent less than the time required to produce the first unit. Therefore, the correct choice is B.

Under Learning Curve Theory, with a Learning Rate of 70