A Production Manager at a Pottery Factory Has Noticed That

question 137

Multiple Choice

A production manager at a pottery factory has noticed that about 70% of defects result from impurities in raw materials, 15% result from human error, 10% from machine malfunctions, and 5% from a variety of other causes. This manager is most likely using a

• A) Pareto chart.
• B) scatter diagram.
• C) Taguchi loss function.
• D) cause-and-effect diagram.
• E) flowchart.

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Definitions:

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies as output varies.

Demand Curve

A graph that represents the relationship between the price of a good and the quantity demanded by consumers at various price levels.

Easy Entry And Exit

A characteristic of competitive markets where there are minimal barriers for new firms to enter or exit the market.

Perfect Competition

A theoretical market structure that features no barriers to entry, a large number of sellers and buyers, completely homogenous products, and perfect information available to all market participants.