Which of the Following Statements Is False Regarding Total Quality

question 128

Multiple Choice

Which of the following statements is false regarding total quality management (TQM) ?

• A) The adoption of TQM means that the organization is managed to excel on all dimensions.
• B) The adoption of TQM means that the customer ultimately defines quality.
• C) With TQM, managers determine the company's performance standards according to what is important to them.
• D) TQM is a management method focused on quality for the customer.

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Definitions:

Profit-maximizing Output

The level of production at which a firm's marginal cost equals its marginal revenue, leading to the highest possible profit.

Cournot Model

A model of oligopoly in economics where competing firms simultaneously and independently decide on the quantity of production, leading to a strategic interaction.

Maximize Revenues

Strategies or actions taken by a business to increase its total income from sales or other sources as much as possible.

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in a market, often to maximize their collective profit.