Each X Requires 2 of Component Y; Each Y Requires

question 82

Multiple Choice

Each X requires 2 of component Y; each Y requires 4 of part Z. The lead time for assembly of X is 1 week. The lead time for the manufacture of Y is 1 week. The lead time for the procurement of Z is 6 weeks. The cumulative lead time for X is __________ weeks.

• A) 6
• B) 7
• C) 8
• D) 10
• E) cannot be determined

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Definitions:

Returns to Scale

The rate at which output increases as a result of proportionately increasing all inputs in the production process.

U.S. Carpet Industry

The sector of the United States economy that is involved in the manufacturing, distribution, and sale of carpets and rugs.

Large Firms

Companies that operate on a large scale, often characterized by significant market share, extensive operations, and substantial revenue.

Decreasing Returns

A situation in which the addition of more units of input results in the less-than-proportional increase in output.