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Firm is about to bid on defense contract

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Question

A firm is about to bid on a defense contract. The product uses new technology, so the firm believes that a learning rate of 75 percent is appropriate. The first unit is expected to take 700 hours, and the contract is for 100 units.

- What is the total amount of hours to build the 100 units?

- What is the average time to build each of the 100 units?

- Assume that a worker works 2000 hours per year. How many workers should be assigned to this contract to complete it in a year?

- If the firm assigns four workers to the task, how long will it take to complete?

Reference no: EM133448718

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