Answer (C) is correct . The learning curve reflects the increased rate at which people perform tasks as they gain experience. The time required to perform a given task becomes progressively shorter. Ordinarily, the curve is expressed in a percentage of reduced time to complete a task for each doubling of cumulative production. One common assumption in a learning curve model is that the cumulative average time (and labor cost) per unit is reduced by a certain percentage each time production doubles. Thus, a 90% learning curve indicates that a doubling of production will reduce the cumulative average unit completion time by 10%. For example, if the first unit required 50 hours to complete, the average completion time after two units will be 45?hours (90% ¡Á 50 hours). If production is again doubled (to?four units), the cumulative average completion time will be 40.5?hours (90% ¡Á 45 hours).Answer (A) is incorrect because The completion time for the first unit is 50.0 hours.
Answer (B) is incorrect because The cumulative average completion time after production of two units is 45.0 hours.
Answer (D) is incorrect because The figure of 40.0 hours assumes two successive reductions of 5 hours [50 – (90% × 50 hours)] each.
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