A Bottleneck Is A

question 44

Multiple Choice

A bottleneck is a:

• A) positive externality resulting from network complementarities.
• B) negative externality resulting from indirect network externalities.
• C) positive externality resulting from congestion beyond the infrastructure capacity.
• D) negative externality resulting from congestion beyond the infrastructure capacity.

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Definitions:

Normal Capacity

The maximum production level or volume of activity that can be achieved under normal conditions by a business.

Normal Spoilage Costs

Costs associated with the expected amount of waste or inefficiency during a production process, considered a normal part of manufacturing.

Direct Materials Price Standard

The predetermined cost per unit of material, used in setting a budget and controlling costs.

Handling Costs

Expenses associated with the processing, transporting, and storing of goods throughout the supply chain.