Producing More Non-Bottleneck Output

question 76

Multiple Choice

Producing more non-bottleneck output

• A)creates more inventory but does not increase throughput contribution.
• B)creates more inventory and increases throughput contribution.
• C)creates less pressure for the bottleneck workstations.
• D)allows for the maximization of overall contribution.
• E)allows for the maximization of overall shop effectiveness.

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Definitions:

Economic Profit

The difference between total revenue and total economic costs (including both explicit and implicit costs), reflecting the true economic performance of a company.

Purely Competitive

An economic model where numerous small businesses operate, offering identical products, with unrestricted market entry and exit, and complete transparency of information.

Short Run

A period in which at least one input in the production process is fixed and cannot be varied to influence output.

Economic Profit

The difference between a firm's total revenue and all costs, including both explicit and implicit costs.