When a Firm Has a Bottleneck Machine, a Good Way

question 11

True/False

When a firm has a bottleneck machine, a good way to manage the bottleneck is to make sure that prior machines produce more units for the bottleneck machine to increase its throughput.

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Definitions:

High Levels

Refers to quantities or amounts that are considerably above the average or typical range.

Output

The amount of products or services generated by a company, sector, or economic system within a specific timeframe.

Constant Returns

Refers to a situation in production where increasing the inputs by a certain factor results in output increasing by the same factor.

Production Functions

A mathematical expression that describes the relationship between inputs and the maximum output that can be produced with those inputs.