Increasing the Capacity of a Work Centre That Is a Bottleneck

question 65

True/False

Increasing the capacity of a work centre that is a bottleneck increases output.

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Definitions:

Output Produced

The total amount of goods and services produced by a firm or an economy during a specific period.

Input

Resources used in the process of production, including raw materials, labor, and capital.

Marginal Revenue Product

The additional revenue generated from using one more unit of input.

Marginal Product

The extra output generated from increasing a particular input by one unit while keeping all other inputs unchanged.