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19 July, 22:35

A bottleneck is:

A. negative externality resulting from congestion beyond the infrastructure capacity.

B. negative externality resulting from indirect network externalities.

C. positive externality resulting from network complementarities.

D. positive externality resulting from congestion beyond the infrastructure capacity.

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  1. 20 July, 02:06
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    A) negative externality resulting from congestion beyond the infrastructure capacity.

    Explanation:

    A bottleneck can be defined as a production station, which is part of a production system, that cannot handle and process all the work in process units arriving to it. As a result, queues and delays are formed at this station since unprocessed units start to line up. Incoming units exceed this station's processing capacity.

    Bottlenecks reduce the whole production process's efficiency and productivity since work in process units cannot be completed in time.
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