How Well the Product or Service Does What It Is

question 48

True/False

How well the product or service does what it is intended to do is known as quality of design.

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Definitions:

Average Cost

The total cost of production divided by the total quantity produced, indicating the cost per unit of output.

Marginal Costs

The additional cost incurred by producing one more unit of a good or service.

Declining

A term indicating a decrease or reduction in quantity, quality, or importance over time.

Cost Function

A mathematical relationship describing how the cost of production changes with changes in the quantity of output produced.