Question

A company negotiates a price for two aircraft that includes a reduction in labor on the second aircraft consistent with a 70% learning curve. Suppose the first aircraft took 100 hours. If the improvement rate changes to 20%, how will the total time to complete both aircraft change?

A) no change

B) -10 hours

C) + 10 hours

D) -50 hours

E) + 50 hours

Answer

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