With Respect to a Product's Characteristics, Complexity Refers to

question 118

Multiple Choice

With respect to a product's characteristics, complexity refers to

• A) the degree of service or support required after the sale.
• B) the assessment of financial risk, social risk, and physical risk.
• C) the number of component parts used in the construction of the original products: the more parts, the more complex the product.
• D) the number of distinct product attributes in terms of color, size, form, and function.
• E) the technical sophistication of the product and the amount of understanding required to use it.

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Definitions:

Marginal Social Cost

The total cost to society of producing one additional unit, including both private costs and any external costs.

Marginal Social Benefit

The extra advantage to the community that comes from creating or using an additional unit of a product or service.

Pollution

It refers to the introduction of harmful substances or products into the environment, causing adverse effects on living beings and ecosystems.

External Costs

Costs that are not reflected in the market price of goods or services, often borne by society.