What Is a Consequence of Using Flexible Machine Cells

question 44

Multiple Choice

What is a consequence of using flexible machine cells?

• A) It fails to adapt to the production of different products.
• B) It generally results in stockpiles of partly finished products.
• C) It improves capacity utilization and reduces wastes.
• D) It increases setup time for complex equipment.
• E) It adds to the cost structure of a firm.

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Definitions:

Production Function

A mathematical representation in economics that describes the relationship between the inputs used in production and the output of goods or services produced.

Returns To Scale

The change in output resulting from a proportionate increase in all inputs in the production process.

Input

Resources such as labor, materials, and capital used in the production process to create goods or services.

Marginal Products

The additional output resulting from a one-unit increase in the use of a variable input, holding all other inputs constant.