Consider the System Composed of Four Processes Linked by a Conveyor

question 27

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.

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Definitions:

Market Period

An extremely short duration in which the supply of a good is fixed, unable to adjust to changes in demand, typically because the period is so brief.

Productive Capacity

The maximum output a firm or economy can produce when using all available resources efficiently.

Calculate Elasticity

The process of assessing how the quantity demanded or supplied of a good changes in response to changes in its price or other factors.

Unit Elastic

Describes a demand or supply situation where a change in price leads to a proportional change in the quantity demanded or supplied.