TQM Focuses on the Customer

question 43

True/False

TQM focuses on the customer.

---

Definitions:

Marginal Cost

The expense associated with manufacturing an extra single unit of a product or service.

Quantity Sold

This refers to the total amount of a product or service that is sold within a given time period.

Perfect Competitor

An idealized market structure in which many firms sell identical products, there is free entry and exit, and all buyers and sellers are fully informed, leading to efficient outcomes.

MC = MR

In economics, the principle that profit maximization occurs when marginal cost (MC) equals marginal revenue (MR), guiding firms in their production decisions.