New Developments in Computer Monitors Have Made Flat Panel LCDs

question 22

Multiple Choice

New developments in computer monitors have made flat panel LCDs cheaper and better than the older CRT models. Given that monitors can contain as much as 8 pounds of lead, disposing of the old monitors creates a:

• A) negative externality.
• B) positive externality.
• C) neutral externality.
• D) limited liability.

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Definitions:

External Failure Cost

External failure costs are expenses incurred when products or services fail to meet quality standards after being delivered to the customer, including returns, repairs, and lost sales.

Value-Added

The enhancement a company gives its product or service before offering the product to customers, increasing its value.

Non-Value-Added

Activities or processes that consume resources but do not add value to the product or service from the customer's perspective.

Total Lead Times

The aggregate time taken from the initiation of a process until its completion, often used in manufacturing to describe the period from ordering materials to the final product delivery.