Which Two of the Following Effects Directly Result from Bottlenecks

question 4

Multiple Choice

Which two of the following effects directly result from bottlenecks?

• A)Increase in costs and increase in defects.
• B)Increase in output and increase in lead-times.
• C)Decrease in inspections and increase in costs.
• D)Decrease in output and increase in lead-times.

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Definitions:

Marginal Cost

The increase in total production cost that results from making one additional unit of a product.

Tradeable Pollution Permits

Tradable Pollution Permits are a market-based approach to controlling pollution by providing economic incentives for achieving reductions in the emissions of pollutants.

Government-Involved

Describes situations or sectors where the government plays a significant role in regulation, ownership, or provision of services.

Injunction

A judicial order that restrains a person from beginning or continuing an action that threatens or invades the legal right of another, or that compels a person to carry out a certain act, such as repairing an injury.