Final answer:
It is false that managers should pay little attention to bottleneck operations; in fact, these are crucial areas where efficiency improvements can increase overall output and maintain cost-effectiveness in the production process.
Step-by-step explanation:
The answer to the student's question is b) False. Managers should pay close attention to bottleneck operations because they are critical points in production that limit the overall output of the company. Addressing bottleneck operations can lead to a more efficient production process and increase the capacity for output, even though they are, by definition, limited in their capacity. For instance, if a firm encounters increased costs for machinery, leading to a shift toward more labor-intensive production methods, it is crucial to understand which stage of production is most cost-effective, such as selecting production technology 3 when it presents the lowest total cost. Moreover, understanding how to balance the number of workers based on the cost and marginal output stages is pivotal to avoid overstaffing and negative returns.