The term "bottleneck" refers to
A)when increasing amounts of variable inputs must share a fixed input.
B)"fixity" of some factor of production
C)None of the above
D)Both a and b

Question

​The term "bottleneck" refers to
A)​when increasing amounts of variable inputs must share a fixed input.
B)"fixity" of some factor of production
C)None of the above
D)​Both a and b

Quizplus · Accepted Answer

A bottleneck occurs when there is a limit on the amount of output that can be produced due to the fixed capacity of a particular input, such as a machine or a specific worker. This is an example of fixity of a factor of production. Additionally, a bottleneck can occur when increasing amounts of variable inputs, such as labor or raw materials, must share a fixed input, further illustrating fixity. Therefore, both options A and B are correct, making choice D the best answer.

​The Term "Bottleneck" Refers to

The Term "Bottleneck" Refers to