Question

A company's production process has a 90 percent learning rate. The process has produced 1,000 units to date. A process refinement is estimated to allow a future learning rate for the identical product of 70 percent. However, the initial unit made using the new process will take the same amount of time as the initial unit produced using the old process. At what point, using the new process, will the production rate exceed the production rate achieved by the old process?
Select one:
1. by the sixth unit.
2. by the seventh unit.
3. by the eighth unit.
4. by the ninth unit.
5. None of the above.

Answer 1