Companies Which Successfully Minimize Product and Service Failures

question 57

Multiple Choice

Companies which successfully minimize product and service failures:

• A)can credit the development of complex accounting systems for their success.
• B)depend on high levels of employee motivation for their low failure rates.
• C)are often known for their emphasis on selling efforts and providing high rewards for sales teams.
• D)have determined how to create,communicate,and deliver value by "hearing the voice" of the consumer.
• E)tend to put a greater focus on defining the best set of product dimensions to match their core competencies.

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Definitions:

Increasing Opportunity Costs

The concept that as the production of one good is increased, the opportunity cost of producing additional units rises.

Production Possibilities Curve

A graph that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.

Bowed Outward

Refers to the shape of a production possibility frontier that shows increasing opportunity costs as production shifts between two goods.

Absolute Advantage

A situation in which a nation, as the result of its previous experience and/or natural endowments, can produce more of a good (with the same amount of resources) than another nation can.