Consider the System Composed of Four Processes Linked by a Conveyor

question 59

Multiple Choice

Consider the system composed of four processes linked by a conveyor belt.There is no storage between these processes pictured below and market demand of 50 units per hour drives the conveyor belt.Assume that no defective units are made.Which statement is best?

• A) There are about 18 units in the process at any given time.
• B) There is more actual time spent in Process 2 and Process 3 combined than in Process 1 and Process 4 combined.
• C) The flow rate through Process 1 is the highest.
• D) The flow rate through Process 4 is the highest.

---

Definitions:

Marginal Cost

It's the cost incurred by producing one additional unit of a product or service.

Marginal Revenue

The extra revenue generated from the sale of an additional unit of a product or service.

Externalities

Financial repercussions impacting bystanders who are not directly involved, which can be beneficial or detrimental.

Efficient Level

Efficient Level refers to the optimal amount of production or activity that maximizes benefits or utility while minimizing costs or waste.