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Impact of HTTPTransport.io.timeout.millis on MP and threads

I understand apigee provides configuration of Router and MP to handle timeouts due to latencies of backend services which are over 55sec. However, it is not very clear on how these timeouts are implemented.

1. Every MP has predefined # of threads configured. Would the threads wait for the defined timeout based on "HTTPTransport.io.timeout.millis"? If so, then, wouldn't increase on timeout would block the threads which impacts the throughput of Apigee?

2. If the above said property is leveraged to handle timeouts then even router timeout should also be modified, in that scenario what is the impact on Nginx from through put perspective?

Ref: https://docs.apigee.com/api-platform/troubleshoot/runtime/504-gateway-timeout

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